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The Effect of Working Time Reduction on Short-Time Compensation: a French Empirical Analysis

Author

Listed:
  • Richard Duhautois
  • Oana Calavrezo

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

  • Emmanuelle Walkowiak

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique, CEE - Centre d'études de l'emploi - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé)

Abstract

The short-time compensation (STC) program aims to avoid lay-offs in case of short-term downturns. According to insurance models, STC is an instrument of both job security and flexibility. This paper investigates the impact of workweek reduction to 35 hours on the French STC recourse. We quantify the average decrease in the STC authorized days with kernel matching estimators assessed on a balanced panel of French establishments. We highlight a substitution effect between STC and working time reduction (WTR) due to their internal flexibility role. As a consequence, the WTR policy refocused STC on its initial job security function.
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Suggested Citation

  • Richard Duhautois & Oana Calavrezo & Emmanuelle Walkowiak, 2006. "The Effect of Working Time Reduction on Short-Time Compensation: a French Empirical Analysis," Post-Print halshs-00273489, HAL.
    • Handle: RePEc:hal:journl:halshs-00273489
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    Cited by:

    1. Jérôme Gautié, 2011. "France: Protecting the Insiders in the Crisis and Forgetting the Outsiders?," Chapters, in: Daniel Vaughan-Whitehead (ed.), Work Inequalities in the Crisis, chapter 5, Edward Elgar Publishing.

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