Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/161283 
Authors: 
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers No. 10660
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
Working time account is an organization tool that allows firms smoothing their demand for hours employed. Descriptive literature suggests that working time accounts reduce turnover and inhibit increase in unemployment during recessions. In a model of optimal choice of hours by a firm I show that working time account does not necessarily guarantee lower turnover. Turnover may be reduced or increased depending on whether a firm meets economic downturn with surplus or deficit of hours and on how productive this firm is. The model predicts that working time accounts contributed positively to reducing turnover in Germany during the Great Recession.
Subjects: 
labour demand
working hours
working time accounts
turnover
Great Recession
Germany
JEL: 
J23
J63
Document Type: 
Working Paper

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