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Working Time Accounts and Turnover

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  • Launov, Andrey

    (University of Kent)

Abstract

Working time account is an organization tool that allows firms smoothing their demand for hours employed. Descriptive literature suggests that working time accounts reduce turnover and inhibit increase in unemployment during recessions. In a model of optimal choice of hours by a firm I show that working time account does not necessarily guarantee lower turnover. Turnover may be reduced or increased depending on whether a firm meets economic downturn with surplus or deficit of hours and on how productive this firm is. The model predicts that working time accounts contributed positively to reducing turnover in Germany during the Great Recession.

Suggested Citation

  • Launov, Andrey, 2017. "Working Time Accounts and Turnover," IZA Discussion Papers 10660, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10660
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    References listed on IDEAS

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    1. Ulf Rinne & Klaus F Zimmermann, 2013. "Is Germany the North Star of Labor Market Policy?," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 702-729, December.
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    More about this item

    Keywords

    working time accounts; working hours; labour demand; turnover; Great Recession; Germany;
    All these keywords.

    JEL classification:

    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs

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