Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175707
Authors: 
Efstathiou, Konstantinos
Mathä, Thomas Y.
Veiga, Cindy
Wintr, Ladislav
Year of Publication: 
2017
Series/Report no.: 
ECB Working Paper 2083
Abstract: 
We analyse the use of active labour market policy (ALMP) measures and short-time work arrangements (STWAs) by Luxembourg firms during the years of economic and financial crisis (2008-09) and the subsequent European sovereign debt crisis (2010-13). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with recourse to ALMPs is greater for large, domestically oriented, multiple establishment firms, firms facing strong demand, with concerns about labour cost pressures and unavailability of skilled labour. The crisis saw a surge in firms using STWAs. The likelihood of applying for STWAs increases with demand volatility, the share of workers with permanent contracts, export orientation and the inability to shift workers between establishments. Firms reported that 20-25% of jobs in STWAs were saved by this measure.
Subjects: 
Firms
survey
crisis
active labour market policy
short-time work arrangements
JEL: 
C25
J63
J68
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-2805-2
Document Type: 
Working Paper
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