Short-Time Work in Structural Adjustment: European Experience

Abstract

Short-time work programmes, which were originally introduced as an exceptional measure to maintain employment in enterprises experiencing temporary difficulties, are now increasingly used as a routine instrument in firms undergoing long-term structural change. This trend is strongest in Italy and Spain but has also been significant in Germany since the mid-1970s. While temporary or cyclical use represents an efficient coordination mechanism of labour-market policy, prolonged use of short-time work in structural adjustment is problematical. The same goals could be better achieved through other labour-market measures.