Tuesday, February 01, 2011

VOX Article on Short-Time Work as an Unemployment Remedy

A useful article by Cahuc and Carcillo

One method for combating unemployment during the global crisis has been the use of short-time work schemes that allow employers to temporarily reduce hours worked while compensating workers for the induced loss of income. In the first of two columns on labour markets, the authors present new evidence establishing that these schemes do indeed reduce unemployment. But they are no panacea and are not without their own problems.

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