Type
Working paper
Titre
Inefficient Short-Time Work
Dans
Sciences Po Economics Discussion Papers
Auteur(s)
CAHUC Pierre - Département d'économie (Auteur)
NEVOUX Sandra - Banque de France (Auteur)
Éditeur
Paris : Département d'économie de Sciences Po
Collection
Sciences Po Economics Discussion Papers : 2019-03
Mots clés
Short-time work, Unemployment insurance, Experience rating
Résumé
EN
This paper shows that the reforms which expanded short-time work in France after the great 2008-2009 recession were largely to the benefit of large firms which are recurrent short-time work users. We argue that this expansion of short-time work is an inefficient way to provide insurance to workers, as it entails cross-subsidies which reduce aggregate production. An efficient policy should provide unemployment insurance benefits funded by experience rated employers’ contributions instead of short-time work benefits. We find that short-time work entails significant production losses compared to an unemployment insurance scheme with experience rating.

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