TY  - RPRT
        AU  - Cahuc, Pierre
AU  - Nevoux, Sandra
        TI  - Inefficient Short-Time Work
        PY  - 2017/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11010
        UR  - https://www.iza.org/publications/dp11010
        AB  - 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.
        KW  - short-time work
KW  - unemployment insurance
KW  - experience rating
        ER  -