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The Short-Time Compensation Program in France: An Efficient Measure against Redundancies?

Author

Listed:
  • Oana Calavrezo

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

  • Richard Duhautois

    (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, ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12)

  • Emmanuelle Walkowiak

    (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, ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique)

Abstract

The short-time compensation (STC) program aims at avoiding redundancies in case of shortterm downturns. This paper investigates the relationship between the STC recourse and establishment redundancy behaviour over the period 1996-2004. We test panel data models with sample selection, endogenous explanatory variable and unobserved heterogeneity developed by Semykina and Wooldridge (2007). We work with an unbalanced panel which results from the matching of five administrative databases. Our panel includes more than 36,000 establishments with at least 50 employees and 204,000 observations. According to our results, the participation in the STC program does not protect from redundancies.

Suggested Citation

  • Oana Calavrezo & Richard Duhautois & Emmanuelle Walkowiak, 2009. "The Short-Time Compensation Program in France: An Efficient Measure against Redundancies?," Working Papers hal-00831348, HAL.
    • Handle: RePEc:hal:wpaper:hal-00831348
    Note: View the original document on HAL open archive server: https://hal.science/hal-00831348
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    References listed on IDEAS

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    1. 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.
    2. 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.
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    4. 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.
    5. Semykina, Anastasia & Wooldridge, Jeffrey M., 2010. "Estimating panel data models in the presence of endogeneity and selection," Journal of Econometrics, Elsevier, vol. 157(2), pages 375-380, August.
    6. 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.
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    8. Askenazy, Philippe, 2008. "A Primer on the 35-Hour in France, 1997–2007," IZA Discussion Papers 3402, Institute of Labor Economics (IZA).
    9. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
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    Cited by:

    1. Dimitris Pavlopoulos & Katja Chkalova, 2022. "Short-time work: A bridge to employment security or a springboard to unemployment?," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 43(1), pages 168-197, February.
    2. Alfonso ARPAIA & Nicola CURCI, "undated". "EU labour market behaviour during the Great Recession," Working Papers wp2010-6, Department of the Treasury, Ministry of the Economy and of Finance.
    3. Olga Bohachova & Bernhard Boockmann & Claudia M. Buch, 2011. "Labor Demand During the Crisis: What Happened in Germany?," CESifo Working Paper Series 3625, CESifo.
    4. Daniel Kopp & Michael Siegenthaler, 2021. "Short-Time Work and Unemployment in and after the Great Recession [Does Employment Protection Inhibit Labor Market Flexibility? Lessons from Germany, France, and Belgium]," Journal of the European Economic Association, European Economic Association, vol. 19(4), pages 2283-2321.
    5. 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.
    6. 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.
    7. Kruppe, Thomas & Scholz, Theresa, 2014. "Labour hoarding in Germany : employment effects of short-time work during the crises," IAB-Discussion Paper 201417, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    8. Oana Calavrezo & Richard Duhautois & Emmanuelle Walkowiak, 2010. "Chômage partiel et disparition des établissements : une analyse à partir de données françaises," Working Papers hal-00831493, HAL.
    9. Jörg Flecker & Annika Schönauer, 2013. "European diversity of work sharing as a crisis measure: The experiences of Austria, Belgium, France and the Netherlands," Chapters, in: Jon C. Messenger & Naj Ghosheh (ed.), Work Sharing during the Great Recession, chapter 3, pages 72-98, Edward Elgar Publishing.

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