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.
Publisher
Cambridge University Press (CUP)
Subject
General Economics, Econometrics and Finance
Reference58 articles.
1. Labor Market Dynamics and Unemployment: A Reconsideration
2. Allianz (2020), ‘The risk of 9 million zombie jobs in Europe’, Allianz Research, https://www.allianz.com/en/economic_research/publications/specials_fmo/17062020_Labormarket.html.
3. Davis, G. (2020), ‘Why the US jobless surge is worse than in Europe’, Financial Times, 17 May 2020.
4. Cajner, T. , Crane, L. , Decker, R. , Grigsby, J. , Hamins-Puertolas, A. , Hurst, E. , Kurz, C. and Yildirmaz, A. (2020), ‘The U.S. labor market during the beginning of the pandemic recession’, Paper prepared for the Brookings Papers on Economic Activity conference on 25 June 2020, www.brookings.edu/events/webinar-special-edition-bpea-2020-covid-19-and-the-economy/.
Cited by
5 articles.
订阅此论文施引文献
订阅此论文施引文献，注册后可以免费订阅5篇论文的施引文献，订阅后可以查看论文全部施引文献