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Was Short-Time Work a Miracle Cure During the Great Recession? The Case of Germany and Italy

  • Fabio R Arico

    ()

    (School of Economics, University of East Anglia, UEA, Norwich NR4 7TJ, UK.)

  • Ulrike Stein

    ()

    (Macroeconomic Policy Institute (IMK), Hans-B�ckler-Foundation, Hans-B�ckler-Stra�e, 39, 40476 D�sseldorf, Germany.)

This paper considers the use of short-time work (STW) schemes as a device to mitigate the negative effects of the current global recession on employment levels. STW schemes have been regarded as a popular and successful counter-cyclical policy to maintain workers in employment. However, by comparing and contrasting the experience of Germany and Italy, we argue that the effectiveness of STW schemes should only be evaluated in relation to (i) the institutional set-up within which they operate, and (ii) the whole set of labour market policies adopted by each country.

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Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

Volume (Year): 54 (2012)
Issue (Month): 2 (June)
Pages: 275-297

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Handle: RePEc:pal:compes:v:54:y:2012:i:2:p:275-297
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