Abstract
For all of its celebrated labour market flexibility, the United States (US) has been unable to protect its labour market from the global financial contraction of 2008–09 through the rapid creation of jobs. Moreover the US is now experiencing a ‘jobless recovery’ as the economy slowly returns to trend growth levels. Meanwhile the ‘stodgy’ labour markets of central Europe have fared much better despite limited fiscal sovereignty under the euro. The global financial crisis has shown that labour market flexibility is a double-edged sword that may cut more deeply on the downstroke. If firms are relatively free to slash jobs and shift the costs of unemployment onto society rather than to negotiate with their employees and the state over survival tactics such as work-sharing arrangements, then serious macroeconomic effects will mount and exacerbate the contraction.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Ayres, C. 1944. The Theory of Economic Progress (Chapel Hill, NC: The University of North Carolina Press).
Balducchi, D.; Wandner, S. 2007. ‘Worksharing policy: power sharing and stalemate in American federalism’, The Journal of Federalism, vol. 30, pp. 1–26.
Bednarzik, R.W. 1983. ‘Short workweeks during economic downturns’, Monthly Labour Review, vol. 106, June, pp. 3–11.
Best, F. 1988. Reducing Workweeks to Prevent Layoffs: The Economics and Social Impacts of Unemployment Insurance-supported Work Sharing (Philadelphia: Temple University Press).
Best, F.; Mattesich, J. 1980. ‘Short-time compensation systems in California and Europe’, Monthly Labour Review, vol. 103, July, pp. 13–22.
Cette, G. 2007. ‘Europe — États-Unis: qui est le plus productif?’, Alternatives Économiques, no. 260, Juillet-Août, pp. 76–7.
Cross, G. 1989. A Quest for Time: The Reduction of Work in Britain and France, 1840–1940 (Berkeley: University of California Press).
Facer, R.L.; Wadsworth, L.L. 2008. ‘Alternative work schedules and work-family balance: an assessment from a growing municipality’, Review of Public Personnel Administration, vol. 28, no. 2, pp. 166–77.
Golden, L.; Gebreselassie, T. 2007. ‘Overemployment mismatches: the preference for fewer work hours’, Monthly Labour Review, April, pp. 18–37.
Hewitt Associates LLC. (2009). Cost Reduction and Engagement Survey 2009. Available online at http://www.hewittassociates.com/_MetaBasicCMAssetCache_/Assets/Articles/2009/Hewitt_Survey_Highlights_Cost_Reduction_and_Engagement_042009.pdf.
Ittner, L. 1984. ‘The federal response to short-time compensation’, in MaCoy, R.; Morand, M. (eds) Short-Time Compensation: A Formula for Work Sharing (New York: Pergamon Press), pp. 158–82.
Kerachsky, S.; London, R.; McCanne, D.; Needels, K.; Nicholson, W.; Walsh, S. 1997. Evaluation of Short-time Compensation Programs (Washington, DC: US Department of Labour.
Lerner, A. 1943. ‘Functional finance and federal debt’, Social Research, February, pp. 38–51.
Levitan, S.A.; Belous, R. 1977. Shorter Hours, Shorter Weeks: Spreading the Work to Reduce Unemployment (Baltimore: Johns Hopkins University Press).
Nemirow, M. 1984a. ‘Work-sharing approaches: past and present’, Monthly Labour Review, September, pp. 34–9.
Nemirow, M. 1984b. ‘Short-time compensation: some policy considerations’, in MaCoy, R.; Morand, M. (eds) Short-Time Compensation: A Formula for Work Sharing (New York: Pergamon Press), pp. 158–82.
Schroeder, P. 1984. ‘Foreword’, in MaCoy, R.; Morand, M. (eds) Short-Time Compensation: A Formula for Work Sharing (New York: Pergamon Press), pp. i–xi.
Van Audenrode, M. 1994. ‘Short-time compensation, job security and employment contracts: evidence from selected OECD countries’, The Journal of Political Economy, vol. 102, no. 1, pp. 76–102.
Watson Wyatt Worldwide. 2009. Effect of the Economic Crisis on HR Programs (Online: Watsonwyatt.com), April.
Wray L.R. (1998) Understanding Modern Money: The Key to Full Employment and Price Stability (Cheltenham: Edward Elgar).
Yost, C. 2009. Work + life Fit Reality CheckSummary www.worklifefit.com/pdf/wlf_realitycheck_summ09.pdf.
Editor information
Editors and Affiliations
Copyright information
© 2011 International Labour Organization
About this chapter
Cite this chapter
LaJeunesse, R.M. (2011). Short Time Compensation as an Employment Stabilization Policy. In: Lee, S., McCann, D. (eds) Regulating for Decent Work. Advances in Labour Studies. Palgrave Macmillan, London. https://doi.org/10.1057/9780230307834_8
Download citation
DOI: https://doi.org/10.1057/9780230307834_8
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-33751-4
Online ISBN: 978-0-230-30783-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)