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The role of the financial constraint in STW policy success during and after the Great Recession

Author

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  • Nathan Vieira

    (Aix-Marseille Université, AMSE)

Abstract
Just one year after the subprime crisis, and despite being one of the most impacted countries in the world, Germany displayed the highest GDP growth rate among EU countries and maintained it at its level for two years. Combined with a surprisingly small variation in unemployment rates over this period, some press articles have nicknamed the impressive German economic recovery the "second German miracle". In this presentation, I produce empirical evidence of the role played by short-time work in the "German miracle". By exploiting firm-level data, I show that short-time work programs should target firms facing huge financial constraints and difficult business conditions. To these conditions, short-time work programs can preserve employment during a crisis and allow a greater take-up afterward.

Suggested Citation

  • Nathan Vieira, 2022. "The role of the financial constraint in STW policy success during and after the Great Recession," French Stata Users' Group Meetings 2022 13, Stata Users Group.
    • Handle: RePEc:boc:fsug22:13
    as

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    File URL: http://repec.org/frsug2022/France22_Vieira.pdf
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    References listed on IDEAS

    as
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    2. Cahuc, Pierre & Kramarz, Francis & Nevoux, Sandra, 2021. "The Heterogeneous Impact of Short-Time Work: From Saved Jobs to Windfall Effects," CEPR Discussion Papers 16168, C.E.P.R. Discussion Papers.
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