Efstathiou, Konstantinos Mathä, Thomas Veiga, Cindy Wintr, Ladislav
Year of Publication:
[Journal:] Journal for Labour Market Research [ISSN:] 2510-5027 [Volume:] 52 [Year:] 2018 [Issue:] 14 [Pages:] 1-20
We analyse the use of short-time work (STW) by Luxembourg firms during the years of economic and financial crisis (2008-2009) and the subsequent European sovereign debt crisis (2010-2013). The economic and financial crisis saw a surge in the number of firms using short-time work. We find that the likelihood that a firm applied for or used short-time work increases with demand volatility, the degree of firm-specific human capital and is higher for firms that cannot shift workers between establishments or that are more export oriented. Firms reported that 20-25% of jobs in short-time work were saved by this measure.