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Flexible Use of the Large-Scale Short-Time Work Scheme in Germany during the Pandemic: Dynamic Labour Demand Models Estimation with High-Frequency Establishment Data

Author

Listed:
  • Lisa Bellmann

    (Institute for Employment Research (IAB), 90478 Nuremberg, Germany)

  • Lutz Bellmann

    (Institute for Employment Research (IAB), 90478 Nuremberg, Germany
    Department of Human Resource Management, Nicolaus Copernicus University in Torun, 87-100 Torun, Poland)

  • Arnd Kölling

    (HWR Berlin School of Economics and Law, Alt Friedrichsfelde 60, D-10315 Berlin, Germany)

Abstract

Our study uses 24 waves of the survey Establishments in the COVID-19 crisis (BeCOVID), a high-frequency dataset collected at monthly intervals by the Institute for Employment Research during the COVID-19 pandemic, to investigate the behaviour of establishments with respect to the dynamics of their employment, in particular their use of short-time work. Due to the high-frequency intervals, the present data are considerably better suited than annual panel surveys to investigate adjustment processes. This is especially true for the role of short-time work, which is seen as a particularly fast adjustment option and thus reduces adjustment costs rapidly. Our estimations reveal a much faster overall workforce adjustment process compared with previous studies, which rely on annual panel surveys. In addition, our empirical results show that the employment adjustment in establishments using short-time work during the COVID-19 crisis occurred almost immediately within one month.

Suggested Citation

  • Lisa Bellmann & Lutz Bellmann & Arnd Kölling, 2023. "Flexible Use of the Large-Scale Short-Time Work Scheme in Germany during the Pandemic: Dynamic Labour Demand Models Estimation with High-Frequency Establishment Data," Economies, MDPI, vol. 11(7), pages 1-17, July.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:7:p:192-:d:1193577
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    References listed on IDEAS

    as
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