Inefficient Short-Time Work

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1 mars 2019

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info:eu-repo/semantics/altIdentifier/hdl/2441/68ufmnnh3j9vmblf03huqt18qe

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http://creativecommons.org/licenses/by-nd/ , info:eu-repo/semantics/OpenAccess




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Pierre Cahuc et al., « Inefficient Short-Time Work », HAL SHS (Sciences de l’Homme et de la Société), ID : 10670/1.23c733...


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Résumé 0

This paper shows that the reforms which expanded short-time work in France after the great 2008-2009 recession were largely to the benefit of large firms which are recurrent short-time work users. We argue that this expansion of short-time work is an inefficient way to provide insurance to workers, as it entails cross-subsidies which reduce aggregate production. An efficient policy should provide unemployment insurance benefits funded by experience rated employers’ contributions instead of short-time work benefits. We find that short-time work entails significant production losses compared to an unemployment insurance scheme with experience rating.

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