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Working Time Accounts and Turnover

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  • Launov, Andrey

    () (University of Kent)

Abstract

Working time account is an organization tool that allows firms smoothing their demand for hours employed. Descriptive literature suggests that working time accounts reduce turnover and inhibit increase in unemployment during recessions. In a model of optimal choice of hours by a firm I show that working time account does not necessarily guarantee lower turnover. Turnover may be reduced or increased depending on whether a firm meets economic downturn with surplus or deficit of hours and on how productive this firm is. The model predicts that working time accounts contributed positively to reducing turnover in Germany during the Great Recession.

Suggested Citation

  • Launov, Andrey, 2017. "Working Time Accounts and Turnover," IZA Discussion Papers 10660, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp10660
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    File URL: http://ftp.iza.org/dp10660.pdf
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    References listed on IDEAS

    as
    1. Rebekka Christopoulou & Philip Vermeulen, 2012. "Markups in the Euro area and the US over the period 1981–2004: a comparison of 50 sectors," Empirical Economics, Springer, vol. 42(1), pages 53-77, February.
    2. Ulf Rinne & Klaus F Zimmermann, 2013. "Is Germany the North Star of Labor Market Policy?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 702-729, December.
    3. 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.
    4. Alexander Herzog-Stein & Ines Zapf, 2014. "Navigating the Great Recession," ILR Review, Cornell University, ILR School, vol. 67(3), pages 891-925, July.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    labour demand; working hours; working time accounts; turnover; Great Recession; Germany;

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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