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

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  • Karl BRENKE
  • Ulf RINNE
  • Klaus F. ZIMMERMANN

Abstract

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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Suggested Citation

  • Karl BRENKE & Ulf RINNE & Klaus F. ZIMMERMANN, 2013. "Short-time work: The German answer to the Great Recession," International Labour Review, International Labour Organization, vol. 152(2), pages 287-305, June.
  • Handle: RePEc:bla:intlab:v:152:y:2013:i:2:p:287-305
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    File URL: http://hdl.handle.net/10.1111/j.1564-913X.2013.00182.x
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    References listed on IDEAS

    as
    1. Werner Eichhorst & Paul Marx, 2009. "Kurzarbeit — Sinnvoller Konjunkturpuffer oder verlängertes Arbeitslosengeld?," Wirtschaftsdienst, Springer;German National Library of Economics, vol. 89(5), pages 322-328, May.
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    More about this item

    JEL classification:

    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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