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

Author

Listed:
  • 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)

Abstract

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 of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4989
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    References listed on IDEAS

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    More about this item

    Keywords

    short-time compensation; establishment exit; selection bias; propensity score matching;
    All these keywords.

    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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