Short-Time Work: The German Answer to the Great Recession
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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- Eichhorst, Werner & Marx, Paul, 2009.
"Kurzarbeit: Sinnvoller Konjunkturpuffer oder verlängertes Arbeitslosengeld?,"
5, Institute for the Study of Labor (IZA).
- 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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