Navigating the Great Recession

Abstract

The existence of working-time accounts played an important role in overcoming the negative effects of the Great Recession in Germany. The authors’ analysis of data on establishments with a works council and at least 20 employees from the WSI Works Council Survey shows that the presence and influence of trade unions and the direct impact of the economic crisis are factors that increased the probability of reducing time credits, or building up time deficits on working-time accounts, to safeguard employment. Individual characteristics, such as the proportion of female workers or the proportion of highly qualified employees, had a negative impact on the ability to use working-time accounts. No significant differences were found between the general use of working-time accounts and their use in consequence of the economic crisis. This could be an indication that working-time accounts need to be well established in order to be useful for safeguarding jobs during an economic crisis.