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Short-Time Compensation and Establishment Exit: An Empirical Analysis with French Data


  • Calavrezo, Oana

    () (DARES, French Ministry of Labour)

  • Duhautois, Richard

    () ((CEE) Centre D'Ètudes de L'Emploi)

  • Walkowiak, Emmanuelle

    () ((CEE) Centre D'Ètudes de L'Emploi)


According to the French law, the short-time compensation (STC) program aims at avoiding redundancies during short-term downturns. Even if it does not shield establishments from redundancies (Calavrezo, Duhautois and Walkowiak, 2009a), STC can preserve an establishment's survival. This paper studies the relationship between STC and establishment exit over the period 2000-2005. We merge six data sets and we test the relationship between STC and establishment exit with propensity score matching techniques. Our results show that, on average, the year after establishments implement STC, they exit the market more intensely than establishments that do not use the program.

Suggested Citation

  • Calavrezo, Oana & Duhautois, Richard & Walkowiak, Emmanuelle, 2010. "Short-Time Compensation and Establishment Exit: An Empirical Analysis with French Data," IZA Discussion Papers 4989, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4989

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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Cahuc, Pierre & Carcillo, Stéphane, 2011. "Is Short-Time Work a Good Method to Keep Unemployment Down?," IZA Discussion Papers 5430, Institute for the Study of Labor (IZA).
    3. Björn Brey & Matthias S. Hertweck, 2016. "The extension of short-time work schemes during the Great Recession: A story of success?," Working Paper Series of the Department of Economics, University of Konstanz 2016-05, Department of Economics, University of Konstanz.
    4. Gonthier, Pauline, 2012. "Why Was Short-Time Work Unattractive During the Crisis?," Institute for Research on Labor and Employment, Working Paper Series qt5dn0w9b1, Institute of Industrial Relations, UC Berkeley.
    5. Alexander Hijzen & Sébastien Martin, 2012. "The Role of Short-Time Working Schemes During the Global Financial Crisis and Early Recovery: A Cross-Country Analysis," OECD Social, Employment and Migration Working Papers 144, OECD Publishing.
    6. Cahuc, Pierre & Nevoux, Sandra, 2017. "Inefficient Short-Time Work," IZA Discussion Papers 11010, Institute for the Study of Labor (IZA).
    7. Scholz, Theresa, 2012. "Employers' selection behavior during short-time work," IAB Discussion Paper 201218, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Olga Bohachova & Bernhard Boockmann & Claudia M. Buch, 2011. "Labor Demand During the Crisis: What Happened in Germany?," CESifo Working Paper Series 3625, CESifo Group Munich.
    9. Alexander Hijzen & Sebastien Martin, 2013. "The role of short-time work schemes during the global financial crisis1 and early recovery: a cross-country analysis," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-31, December.
    10. Victoria Osuna & J. García-Pérez, 2015. "On the Effectiveness of Short-time Work Schemes in Dual Labor Markets," De Economist, Springer, vol. 163(3), pages 323-351, September.
    11. Becker, Sebastian, 2016. "Selection into Short-Time Work and Labor Market Outcomes after the Great Recession - Empirical Evidence using German Micro-Level Data," Annual Conference 2016 (Augsburg): Demographic Change 145889, Verein für Socialpolitik / German Economic Association.

    More about this item


    short-time compensation; establishment exit; selection bias; propensity score matching;

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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