Short-time Work in the Great Recession: Firm-Level Evidence from 20 EU Countries
| Autor: | Reamonn Lydon, Stephen Millard, Thomas Y. Mathä |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics Labour economics Employment protection legislation media_common.quotation_subject J68 Wage Recession Human capital Crisis Firms ddc:330 Economics Economic impact analysis Survey media_common Wages Labor policy. Labor and the state HD7795-8027 Shock (economics) Demand shock Industrial relations Short-time work C25 Aggregate data E24 J63 |
| Zdroj: | IZA Journal of Labor Policy, Vol 8, Iss 1, Pp 1-29 (2019) |
| ISSN: | 1556-5068 |
| Popis: | Using firm-level data from a large-scale European survey among 20 countries, we analyse the determinants of firms using short-time work (STW). We show that firms are more likely to use STW in case of negative demand shocks. We show that STW schemes are more likely to be used by firms with high degrees of firm-specific human capital, high firing costs, and operating in countries with stringent employment protection legislation and a high degree of downward nominal wage rigidity. STW use is higher in countries with formalised schemes and in countries where these schemes were extended in response to the recent crisis. On the wider economic impact of STW, we show that firms using the schemes are significantly less likely to lay off permanent workers in response to a negative shock, with no impact for temporary workers. Relating our STW take-up measure in the micro data to aggregate data on employment and output trends, we show that sectors with a high STW take-up exhibit significantly less cyclical variation in employment. |
| Databáze: | OpenAIRE |
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