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Short-time work: The German answer to the Great Recession

  • Karl BRENKE
  • Ulf RINNE
  • Klaus F. ZIMMERMANN

Short-time work was the 'German answer' to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has certainly contributed to the mild response of the German labor market to the crisis, but this is likely due to the country-specific context. Although the crisis has been overcome and employment is strongly expanding, modified regulations governing shorttime work are still in place. This leads to undesired side effects.

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File URL: http://hdl.handle.net/10.1111/j.1564-913X.2013.00182.x
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Article provided by International Labour Organization in its journal International Labour Review.

Volume (Year): 152 (2013)
Issue (Month): 2 (06)
Pages: 287-305

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Handle: RePEc:bla:intlab:v:152:y:2013:i:2:p:287-305
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  1. Werner Eichhorst & Paul Marx, 2009. "Kurzarbeit — Sinnvoller Konjunkturpuffer oder verlängertes Arbeitslosengeld?," Wirtschaftsdienst, Springer, vol. 89(5), pages 322-328, May.
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