Economics Seminar Series: Pierre Cahuc, CREST-ENSAE, Ecole Polytechnique, Paris, & IZA, CEPR

Title: Short-Time Work and Employment in the Great Recession in France

2018.01.22 | Bodil Krog

Date Thu 22 Feb
Time 14:15 15:30
Location Fuglesangs Allé 4, 8210 Aarhus V, building 2632(L), room 242

Presenter: Pierre Cahuc, Professor of Economics, ENSAE, Ecole Polytechnique - Head of Economic Research, CREST - Research fellow IZA, CEPR

Title: Short-Time Work and Employment in the Great Recession in France (with Francis Kramarz and Sandra Nevoux)

Abstract: Short-time work increased dramatically in France in 2009, during the great recession. Relying on administrative data covering all French establishments, we find that short-time work has had a positive impact on employment for firms which faced dramatic drop in their revenue, but not for the other firms. Nevertheless, we find that the cost per saved job is very low relative to other policies aimed at sustaining employment, such as wage subsidies, hiring subsidies, or the creation of public jobs. These findings suggest that short-time work can be an effective way to save jobs when the economy is hit by a recession, but they also call for a careful design of short-time work schemes.

Organizers: Marcel Smolka and Jonas Maibom

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Economics Seminar Series
14304 / i32