Abstract | The short-time compensation (stc) program aims at avoiding layoffs in case of short-term downturns. According to the international literature, stc is an instrument of both job security and flexibility. This paper investigates the impact of the worksharing implementation on the French stc use. The form of worksharing examined in this study is the reduction of the standard or contractual hours worked per week to 35 hours. We quantify the average stc decrease with kernel matching difference-in-differences estimators assessed on a balanced panel of French establishments from 1995 to 2005. We highlight a decrease in the stc use after the worksharing implementation due to their internal flexibility roles. As a consequence, the worksharing implementation would refocus stc on its initial job security function. |
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