Welfare effects of short-time compensation
"We study welfare effects of public short-time compensation (STC) in a model in which firms respond to idiosyncratic profitability shocks by adjusting employment and hours per worker. Introducing STC substantially improves welfare by mitigating distortions caused by public unemployment insuranc...
| Main Authors: | , |
|---|---|
| Institution: | ETUI-European Trade Union Institute |
| Format: | TEXT |
| Language: | English |
| Published: |
Munich
2014
CESifo |
| Subjects: | |
| Online Access: | https://www.labourline.org/KENTIKA-19115492124919336749-Welfare-effects-of-short-time-.htm |
| _version_ | 1771659893513650177 |
|---|---|
| author | Braun, Helge Brügemann, Björn |
| author_facet | Braun, Helge Brügemann, Björn |
| collection | Library items |
| description | "We study welfare effects of public short-time compensation (STC) in a model in which firms respond to idiosyncratic profitability shocks by adjusting employment and hours per worker. Introducing STC substantially improves welfare by mitigating distortions caused by public unemployment insurance (UI), but only if firms have access to private insurance. Otherwise firms respond to low profitability by combining layoffs with long hours for remaining workers, rather than by taking up STC. Optimal STC is substantially less generous than UI even when firms have access to private insurance, and equally generous STC is worse than not offering STC at all." |
| format | TEXT |
| geographic | OECD countries |
| id | 19115492124919336749_9f89afa60c644745b19f2454184d9ef3 |
| institution | ETUI-European Trade Union Institute |
| is_hierarchy_id | 19115492124919336749_9f89afa60c644745b19f2454184d9ef3 |
| is_hierarchy_title | Welfare effects of short-time compensation |
| language | English |
| physical | 54 p. Digital |
| publishDate | 2014 |
| publisher | Munich CESifo |
| spellingShingle | Braun, Helge Brügemann, Björn short time working unemployment unemployment benefit welfare state Welfare effects of short-time compensation |
| thumbnail | https://www.labourline.org/Image_prev.jpg?Archive=108633592681 |
| title | Welfare effects of short-time compensation |
| topic | short time working unemployment unemployment benefit welfare state |
| url | https://www.labourline.org/KENTIKA-19115492124919336749-Welfare-effects-of-short-time-.htm |