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STW: cushioning labour market shocks during downturns
STW: cushioning labour market shocks during downturns
My research on short-time work schemes began in 2006, before the Global Financial Crisis, under a contract with the French Ministry of Labour and Employment. With Oana Calavrezo, I provided the first evidence-based analysis of STW in Europe, using administrative data to evaluate programme efficiency. My recommendations informed regulatory reforms that reduced administrative burdens in 2015 and later extended coverage during COVID-19, underpinning a €35 billion investment that protected employment. This work has been cited in French government reports and presented to the Cabinet of the Prime Minister. More recently, my research examines how STW is evolving to address climate-related shocks. In Australia, I contributed an ex-ante assessment of JobKeeper, the largest labour market policy intervention in Australian history (2021, Australian Journal of Public Administration) and provided expert advice to the Treasury’s Independent Evaluation of JobKeeper (2023).
What is STW?
Short-Time Work (activité partielle in France or Kurzarbeit in Germany) is a labour market policy that allows companies facing temporary difficulties to reduce employees’ working hours instead of laying them off. The state compensates workers for lost wages and reimburses part of the employer’s costs. Originally designed to manage cyclical downturns, the scheme has been widely used during crises such as the 2008 financial crisis and the COVID-19 pandemic. Its main purpose is to preserve jobs, maintain firm–worker relationships, and support economic recovery.
Similar mechanisms were implemented during COVID in other countries, like Australia's JobKeeper policy.
STW and the COVID-19 Pandemic
STW and the COVID-19 Pandemic
A new area of research: investigating STW as a mechanism to manage climate change impact on the labour market
A new area of research: investigating STW as a mechanism to manage climate change impact on the labour market
I am currently extending my research on STW to investigate if labour market policies such as STW can be adapted to mitigate the impact of climate on the labour market . Watch this space.
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