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Selection into Short-Time Work and Labor Market Outcomes after the Great Recession - Empirical Evidence using German Micro-Level Data

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  • Becker, Sebastian

Abstract

Short-time work (STW) was one of the most popular labor market policies during the great recession and is considered a main factor of the German Labor Market Miracle. However, little is known about the labor market outcomes of participants after the crisis. Using a unique dataset on STW linked with IAB’s Integrated Employment Biographies, I can observe which workers firms selected into the scheme and also observe their labor market outcomes during and after the crisis. Comparing participants and non-participants within firms I find that workers with higher tenure, age, full time jobs and education are more likely to be chosen for STW. Furthermore, participants have by far a higher probability to keep their job.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:vfsc16:145889
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    1. 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.
    2. Tito Boeri & Herbert Bruecker, 2011. "Short‐time work benefits revisited: some lessons from the Great Recession," Economic Policy, CEPR;CES;MSH, vol. 26(68), pages 697-765, October.
    3. 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.
    4. 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).
    5. 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.
    6. Werner Eichhorst & Paul Marx, 2009. "Kurzarbeit — Sinnvoller Konjunkturpuffer oder verlängertes Arbeitslosengeld?," Wirtschaftsdienst, Springer;German National Library of Economics, vol. 89(5), pages 322-328, May.
    7. 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).
    8. Münstermann, Leonard & Schneck, Stefan & Wolter, Hans-Jürgen, 2012. "Die Bedeutung des Kurzarbeitergeldes im Mittelstand," IfM-Materialien 215, Institut für Mittelstandsforschung (IfM) Bonn.
    9. Karl Brenke & Ulf Rinne & Klaus F. Zimmermann, 2010. "Kurzarbeit: nützlich in der Krise, aber nun den Ausstieg einleiten," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 77(16), pages 2-13.
    10. 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.
    11. 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].
    12. Kruppe, Thomas & Scholz, Theresa, 2014. "Labour hoarding in Germany : employment effects of short-time work during the crises," IAB Discussion Paper 201417, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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    14. repec:ilo:ilowps:457637 is not listed on IDEAS
    15. Crimmann, Andreas. & Wieβner, Frank. & Bellmann, Lutz., 2010. "The German work-sharing scheme : an instrument for the crisis," ILO Working Papers 994576373402676, International Labour Organization.
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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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