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KURZARBEIT/SHORT TIME WORKING: EXPERIENCES AND LESSONS FROM THE COVID-INDUCED DOWNTURN

Published online by Cambridge University Press:  14 March 2022

Bernard H. Casey Open the ORCID record for Bernard H. Casey [Opens in a new window]  and
Ken Mayhew
Bernard H. Casey*
Affiliation:
Social Economic Research, London, United Kingdom and Frankfurt a. M., Germany
Ken Mayhew
Affiliation:
Department of Education, University of Oxford, Oxford, United Kingdom ROA, Maastricht University, Maastricht, The Netherlands
*
*Corresponding author: b.casey@soceconres.eu
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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 workinglay-offsunemployment insurancetrainingcovidJ24J38J63J65J68
Type
Research Article
Information
National Institute Economic Review , Volume 263 , Spring 2023 , pp. 47 - 60
Copyright
© The Author(s), 2022. Published by Cambridge University Press on behalf of National Institute Economic Review

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