Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/233971 
Year of Publication: 
2021
Series/Report no.: 
GLO Discussion Paper No. 840
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
We analyse measures of internal flexibility taken to safeguard employment during the Coronavirus Crisis in comparison to the Great Recession. Cyclical working-time reductions are again a major factor in safeguarding employment. Whereas during the Great Recession all working-time instruments contributed to the reduction in working time, short-time work (STW) now accounts for almost all of the working-time reduction. STW was more rapidly extended, more generous, and for the first time a stronger focus was put on securing household income on a broad basis. Still, the current crisis is more severe and affects additional sectors of the economy where low-wage earners are affected more frequently by STW and suffered on average relatively greater earnings losses. A hypothetical average short-time worker had a relative income loss in April 2020 that was more than twice as large as that in May 2009. Furthermore, marginal employment is affected strongly but not protected by STW.
Subjects: 
Internal Flexibility Short-Time Work
Business Cycles
Great Recession
Coronavirus Crisis
JEL: 
E24
E32
J08
J20
Document Type: 
Working Paper

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