July 2024

IZA DP No. 17111: The Micro and Macro Economics of Short-Time Work

This paper is forthcoming of the Handbook of Labor Economics edited by Christian Dustmann and Thomas Lemieux.

This article provides an overview of the economic literature on short-time work. It presents the main characteristics of short-time work since its emergence in Germany in the 1930s. It analyzes its effectiveness as a job preservation mechanism, drawing on theoretical models and empirical studies. It concludes by highlighting the areas that future research could explore to address the most significant gaps in our understanding of short-time work.