Kurzarbeit/Short Time Working: Experiences And Lessons From The Covid-Induced Downturn

B.H. Casey; K. Mayhew

doi:10.1017/nie.2021.46

Kurzarbeit/Short Time Working: Experiences And Lessons From The Covid-Induced Downturn

B.H. Casey^*, K. Mayhew

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

Following the covid-induced lockdowns, many commented on the role the German model of Kurzarbeit could play in reducing unemployment. Other countries emulated the model. Looking at the experiences of Germany, the UK, Sweden and the USA, the article analyses the strengths and weaknesses of short-time working (STW) schemes. It asks whether STW has been well designed to have optimal short and longer run impact. It is quite effective as a short-term palliative, but in longer downturns, its weaknesses come to the fore. It is by no means clear that the UK needs a permanent replacement for the furlough.

Original language	English
Pages (from-to)	47-60
Number of pages	14
Journal	National Institute Economic Review
Volume	263
Early online date	14 Mar 2022
DOIs	https://doi.org/10.1017/nie.2021.46
Publication status	Published - 2023

Keywords

short-time working
lay-offs
unemployment insurance
training
covid
LABOR-MARKET
UNEMPLOYMENT

Access to Document

10.1017/nie.2021.46

Cite this

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title = "Kurzarbeit/Short Time Working: Experiences And Lessons From The Covid-Induced Downturn",

abstract = "Following the covid-induced lockdowns, many commented on the role the German model of Kurzarbeit could play in reducing unemployment. Other countries emulated the model. Looking at the experiences of Germany, the UK, Sweden and the USA, the article analyses the strengths and weaknesses of short-time working (STW) schemes. It asks whether STW has been well designed to have optimal short and longer run impact. It is quite effective as a short-term palliative, but in longer downturns, its weaknesses come to the fore. It is by no means clear that the UK needs a permanent replacement for the furlough.",

keywords = "short-time working, lay-offs, unemployment insurance, training, covid, LABOR-MARKET, UNEMPLOYMENT",

author = "B.H. Casey and K. Mayhew",

note = "data source: UK Office for National Statistics; OECD; US Bureau of Labor Statistics; Germany Bundesanstalt fur Arbeit; Sweden Tilvaxtverket.",

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doi = "10.1017/nie.2021.46",

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pages = "47--60",

journal = "National Institute Economic Review",

issn = "0027-9501",

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AU - Casey, B.H.

AU - Mayhew, K.

N1 - data source: UK Office for National Statistics; OECD; US Bureau of Labor Statistics; Germany Bundesanstalt fur Arbeit; Sweden Tilvaxtverket.

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AB - Following the covid-induced lockdowns, many commented on the role the German model of Kurzarbeit could play in reducing unemployment. Other countries emulated the model. Looking at the experiences of Germany, the UK, Sweden and the USA, the article analyses the strengths and weaknesses of short-time working (STW) schemes. It asks whether STW has been well designed to have optimal short and longer run impact. It is quite effective as a short-term palliative, but in longer downturns, its weaknesses come to the fore. It is by no means clear that the UK needs a permanent replacement for the furlough.

KW - short-time working

KW - lay-offs

KW - unemployment insurance

KW - training

KW - covid

KW - LABOR-MARKET

KW - UNEMPLOYMENT

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DO - 10.1017/nie.2021.46

M3 - Article

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SP - 47

EP - 60

JO - National Institute Economic Review

JF - National Institute Economic Review

ER -