Is Short-Time Work a Good Method to Keep Unemployment Down?

  title={Is Short-Time Work a Good Method to Keep Unemployment Down?},
  author={Pierre Cahuc and St{\'e}phane Carcillo},
  journal={Macroeconomics: Employment},
Short-time work compensation aims at reducing lay-offs by allowing employers to temporarily reduce hours worked while compensating workers for the induced loss of income. These programs are now widespread in the OECD countries, notably following the 2008-2009 crisis. This paper discusses the efficiency of this type of policy and investigates its impact on unemployment and employment. There is some evidence that short-time compensation programs stabilize permanent employment and reduce… Expand
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  • 2019
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