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Design and Take-Up of Austria's Coronavirus Short-Time Work Model

Author

Listed:
  • Dennis Tamesberger

    (Department for Economic, Welfare and Social Policy, Chamber of Labour, Linz, Austria)

  • Simon Theurl

    (Department for Labour Market and Integration, Chamber of Labour, Vienna, Austria)

Abstract

Short-time work was frequently used in the EU during the COVID-19 pandemic to minimize crisis-related layoffs. This paper focuses on the short-time work (STW) scheme in Austria by exploring the characteristic features of the Austrian Coronavirus STW model and examining how it was utilized. We first give a historical overview of how STW developed in Austria before focusing specifically on the country’s STW scheme – one of the most generous among the EU27 – during the course of the coronavirus pandemic. By analyzing relevant data, we identified three key periods in which STW was reformed and slightly modified. We also aim to show how STW take-up rates differ according to gender and sector. Moreover, we consider STW payments alongside sectors and are able to identify those sectors that see a greater benefit from STW. We conclude that the pandemic offered learning effects, thus allowing STW to be used more efficiently in the future by employers in times of crisis.

Suggested Citation

  • Dennis Tamesberger & Simon Theurl, 2021. "Design and Take-Up of Austria's Coronavirus Short-Time Work Model," ICAE Working Papers 127, Johannes Kepler University, Institute for Comprehensive Analysis of the Economy.
    • Handle: RePEc:ico:wpaper:127
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    References listed on IDEAS

    as
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    2. Balleer, Almut & Gehrke, Britta & Lechthaler, Wolfgang & Merkl, Christian, 2016. "Does short-time work save jobs? A business cycle analysis," European Economic Review, Elsevier, vol. 84(C), pages 99-122.
    3. 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.
    4. Michael C. Burda & Jennifer Hunt, 2011. "What Explains the German Labor Market Miracle in the Great Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 42(1 (Spring), pages 273-335.
    5. Cahuc, Pierre & Carcillo, Stéphane, 2011. "Is Short-Time Work a Good Method to Keep Unemployment Down?," IZA Discussion Papers 5430, Institute of Labor Economics (IZA).
    6. Julia Bock-Schappelwein & Helmut Mahringer & Eva Rückert, 2011. "Kurzarbeit in Deutschland und Österreich," WIFO Studies, WIFO, number 41278.
    7. Werner Eichhorst & Paul Marx & Ulf Rinne, 2020. "Manoeuvring Through the Crisis: Labour Market and Social Policies During the COVID-19 Pandemic," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(6), pages 375-380, November.
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    Cited by:

    1. Bernhard Ebbinghaus & Lukas Lehner, 2022. "Cui bono – business or labour? Job retention policies during the COVID-19 pandemic in Europe," Transfer: European Review of Labour and Research, , vol. 28(1), pages 47-64, February.

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    More about this item

    Keywords

    COVID-19 crisis; unemployment; short-time work (STW); labor hoarding; ALMPs;
    All these keywords.

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