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Short-Time Work: The German Answer to the Great Recession

  • Brenke, Karl


    (DIW Berlin)

  • Rinne, Ulf



  • Zimmermann, Klaus F.


    (IZA and University of Bonn)

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 short-time work are still in place. This leads to undesired side effects.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 5780.

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Length: 29 pages
Date of creation: Jun 2011
Date of revision:
Handle: RePEc:iza:izadps:dp5780
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  1. Eichhorst, Werner & Marx, Paul, 2009. "Kurzarbeit: Sinnvoller Konjunkturpuffer oder verlängertes Arbeitslosengeld?," IZA Standpunkte 5, Institute for the Study of Labor (IZA).
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