IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-08j20016.html
   My bibliography  Save this article

The Substitution of Worksharing and Short-Time Compensation in France: A Difference-in-differences Approach

Author

Listed:
  • Richard Duhautois

    (CEE-TEPP, University of Paris-Est- Marne-la-Vallée and CREST)

  • Emmanuelle Walkowiak

    (University of Paris 12-ERUDITE and CEE)

  • Oana Calavrezo

    (LEO, University of Orleans and CEE)

Abstract

The short-time compensation (STC) program aims at avoiding redundancies in case of strong short-term downturns. In the literature, STC is an instrument of both job security and flexibility. This paper investigates the impact of worksharing on STC in France. The form of worksharing examined in this study is the reduction of the standard or contractual hours worked per week to 35 hours in France. We quantify the average decrease in the STC recourse with difference-in-differences estimators assessed on a balanced panel of French establishments. We highlight a substitution effect between STC and worksharing due to their internal flexibility role. As a consequence, STC seems to be less used as a flexibility device and the worksharing policy would refocus STC on its employment protection role.

Suggested Citation

  • Richard Duhautois & Emmanuelle Walkowiak & Oana Calavrezo, 2009. "The Substitution of Worksharing and Short-Time Compensation in France: A Difference-in-differences Approach," Economics Bulletin, AccessEcon, vol. 29(2), pages 820-833.
    • Handle: RePEc:ebl:ecbull:eb-08j20016
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P32.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. repec:mpr:mprres:7503 is not listed on IDEAS
    2. Katharine G. Abraham & Susan N. Houseman, 1994. "Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium," NBER Chapters, in: Social Protection versus Economic Flexibility: Is There a Trade-Off?, pages 59-94, National Bureau of Economic Research, Inc.
    3. repec:mpr:mprres:1805 is not listed on IDEAS
    4. Askenazy, Philippe, 2008. "A Primer on the 35-Hour in France, 1997–2007," IZA Discussion Papers 3402, Institute of Labor Economics (IZA).
    5. Kapteyn, Arie & Kalwij, Adriaan & Zaidi, Asghar, 2004. "The myth of worksharing," Labour Economics, Elsevier, vol. 11(3), pages 293-313, June.
    6. repec:mpr:mprres:7502 is not listed on IDEAS
    7. Burdett, Kenneth & Wright, Randall, 1989. "Unemployment Insurance and Short-Time Compensation: The Effects on Layoffs, Hours per Worker, and Wages," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1479-1496, December.
    8. Van Audenrode, Marc A, 1994. "Short-Time Compensation: Job Security, and Employment Contracts: Evidence from Selected OECD Countries," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 76-102, February.
    9. Stephen Walsh & Rebecca London & Deana McCanne & Karen Needels & Walter Nicholson & Stuart Kerachsky, 1997. "Evaluation of Short-Time Compensation Programs: Final Report," Mathematica Policy Research Reports 4478280a4e4f4cdeaed9a7645, Mathematica Policy Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Calavrezo, Oana & Duhautois, Richard & Walkowiak, Emmanuelle, 2010. "Short-Time Compensation and Establishment Exit: An Empirical Analysis with French Data," IZA Discussion Papers 4989, Institute of Labor Economics (IZA).
    2. Philippe Askenazy, 2013. "Working time regulation in France from 1996 to 2012," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 37(2), pages 323-347.
    3. Gonthier, Pauline, 2012. "Why Was Short-Time Work Unattractive During the Crisis?," Institute for Research on Labor and Employment, Working Paper Series qt5dn0w9b1, Institute of Industrial Relations, UC Berkeley.
    4. José M. Arranz & Carlos García†Serrano & Virginia Hernanz, 2018. "Short†Time Work and Employment Stability: Evidence from a Policy Change," British Journal of Industrial Relations, London School of Economics, vol. 56(1), pages 189-222, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oana Calavrezo & Richard Duhautois & Emmanuelle Walkowiak, 2007. "The Short-Time Compensation Program in France: an Efficient Measure Against Redundancies?," Post-Print halshs-00273367, HAL.
    2. Calavrezo, Oana & Duhautois, Richard & Walkowiak, Emmanuelle, 2010. "Short-Time Compensation and Establishment Exit: An Empirical Analysis with French Data," IZA Discussion Papers 4989, Institute of Labor Economics (IZA).
    3. Reamonn Lydon & Thomas Y. Mathä & Stephen Millard, 2019. "Short-time work in the Great Recession: firm-level evidence from 20 EU countries," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 8(1), pages 1-29, December.
    4. repec:hal:wpspec:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    5. Cahuc, Pierre & Carcillo, Stéphane, 2011. "Is Short-Time Work a Good Method to Keep Unemployment Down?," IZA Discussion Papers 5430, Institute of Labor Economics (IZA).
    6. repec:spo:wpecon:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    7. Pierre Cahuc & Francis Kramarz & Sandra Nevoux, 2021. "The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects," SciencePo Working papers Main hal-03881632, HAL.
    8. Marlon R. Tracey & Solomon W. Polachek, 2020. "Heterogeneous Layoff Effects of the US Short‐Time Compensation Program," LABOUR, CEIS, vol. 34(4), pages 399-426, December.
    9. Pierre Cahuc, 2019. "Short-time work compensation schemes and employment," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, May.
    10. Balleer, Almut & Gehrke, Britta & Lechthaler, Wolfgang & Merkl, Christian, 2016. "Does short-time work save jobs? A business cycle analysis," European Economic Review, Elsevier, vol. 84(C), pages 99-122.
    11. Pierre Cahuc, 2014. "Short-time work compensations and employment," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-11, May.
    12. Alexander Hijzen & Sebastien Martin, 2013. "The role of short-time work schemes during the global financial crisis1 and early recovery: a cross-country analysis," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-31, December.
    13. Porras-Arena, M. Sylvina & Martín-Román, Ángel L. & Dueñas Fernández , Diego & Llorente Heras, Raquel, 2024. "Okun’s Law: The effects of the COVID-19 pandemic and the temporary layoffs procedures (ERTEs) on Spanish regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 59, pages 105-125.
    14. repec:hal:spmain:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    15. repec:spo:wpmain:info:hdl:2441/2ju03cb3kc9a3986bsibii70hd is not listed on IDEAS
    16. Lonnie Golden & Stuart Glosser, 2013. "Work sharing as a potential policy tool for creating more and better employment: A review of the evidence," Chapters, in: Jon C. Messenger & Naj Ghosheh (ed.), Work Sharing during the Great Recession, chapter 7, pages 203-258, Edward Elgar Publishing.
    17. Cahuc, Pierre & Nevoux, Sandra, 2017. "Inefficient Short-Time Work," IZA Discussion Papers 11010, Institute of Labor Economics (IZA).
    18. repec:hal:wpspec:info:hdl:2441/68ufmnnh3j9vmblf03huqt18qe is not listed on IDEAS
    19. Katharine G. Abraham & Susan N. Houseman, 1995. "Labor Adjustment under Different Institutional Structures: A Case Study of Germany and the United States," Book chapters authored by Upjohn Institute researchers, in: Friedrich Buttler & Wolfgang Franz & Ronald Schettkat & David Soskice (ed.),Institutional Frameworks and Labor Market Performance: Comparative Views on the U.S. and German Economies, pages 285-315, W.E. Upjohn Institute for Employment Research.
    20. Victoria Osuna & J. García-Pérez, 2015. "On the Effectiveness of Short-time Work Schemes in Dual Labor Markets," De Economist, Springer, vol. 163(3), pages 323-351, September.
    21. Victoria Osuna & José Ignacio García Pérez, 2021. "Temporary layoffs, short-time work and COVID-19: the case of a dual labour market," Applied Economic Analysis, Emerald Group Publishing Limited, vol. 30(90), pages 248-262, December.
    22. Julio G. Fournier Gabela & Luis Sarmiento, 2020. "Kurzarbeit and Natural Disasters: How Effective Are Short-Time Working Allowances in Avoiding Unemployment?," Discussion Papers of DIW Berlin 1909, DIW Berlin, German Institute for Economic Research.
    23. repec:hal:spmain:info:hdl:2441/6596a4s9af8lt872jnqvm5jg73 is not listed on IDEAS
    24. Tito Boeri & Pierre Cahuc, 2022. "Labor Market Insurance Policies in the XXI Century," SciencePo Working papers Main hal-03878719, HAL.
    25. Giulia Giupponi & Camille Landais, 2023. "Subsidizing Labour Hoarding in Recessions: The Employment and Welfare Effects of Short-time Work," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(4), pages 1963-2005.
    26. Pierre Cahuc & Francis Kramarz & Sandra Nevoux, 2018. "When Short-Time Work Works," SciencePo Working papers hal-03393127, HAL.

    More about this item

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-08j20016. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.