TY - JOUR

T1 - Labour mobility, short-time work and working from home

T2 - establishments' behaviour during the COVID-19 crisis

AU - Bellmann, Lisa

AU - Bellmann, Lutz

AU - Hübler, Olaf

PY - 2024/3/29

Y1 - 2024/3/29

N2 - Purpose: We enquire whether short-time work (STW) avoids firings as intended by policymakers and is associated with unintended side effects by subsidising some establishments and locking in some employees. Additionally, where it was feasible, establishments used working from home (WFH) to continue working without risking an increase in COVID-19 infections and allowing employed parents to care for children attending closed schools. Design/methodology/approach: Using 21 waves of German high-frequency establishment panel data collected during the COVID-19 crisis, we investigate how STW and WFH are associated with hirings, firings, resignations and excess labour turnover (or churning). Findings: Our results show the important influences of STW and working from home on employment dynamics during the pandemic. By means of STW, establishments are able to avoid an increase in involuntary layoffs and hiring decreases significantly. In contrast, WFH is associated with a rise in resignations, as can be expected from a theoretical perspective. Originality/value: While most of the literature on STW and WFH is unrelated and remains descriptive, we consider them in conjunction and conduct panel data analyses. We apply data and methods that allow for the dynamic pattern of STW and working from home during the pandemic. Furthermore, our data include relevant establishment-level variables, such as the existence of a works council, employee qualifications, establishment size, the degree to which the establishment was affected by the COVID-19 crisis, industry affiliation and a wave indicator for the period the survey was conducted.

AB - Purpose: We enquire whether short-time work (STW) avoids firings as intended by policymakers and is associated with unintended side effects by subsidising some establishments and locking in some employees. Additionally, where it was feasible, establishments used working from home (WFH) to continue working without risking an increase in COVID-19 infections and allowing employed parents to care for children attending closed schools. Design/methodology/approach: Using 21 waves of German high-frequency establishment panel data collected during the COVID-19 crisis, we investigate how STW and WFH are associated with hirings, firings, resignations and excess labour turnover (or churning). Findings: Our results show the important influences of STW and working from home on employment dynamics during the pandemic. By means of STW, establishments are able to avoid an increase in involuntary layoffs and hiring decreases significantly. In contrast, WFH is associated with a rise in resignations, as can be expected from a theoretical perspective. Originality/value: While most of the literature on STW and WFH is unrelated and remains descriptive, we consider them in conjunction and conduct panel data analyses. We apply data and methods that allow for the dynamic pattern of STW and working from home during the pandemic. Furthermore, our data include relevant establishment-level variables, such as the existence of a works council, employee qualifications, establishment size, the degree to which the establishment was affected by the COVID-19 crisis, industry affiliation and a wave indicator for the period the survey was conducted.

KW - COVID-19

KW - High-frequency establishment data

KW - Labour mobility

KW - Panel analysis

KW - Short-time work

KW - Working from home

UR - http://www.scopus.com/inward/record.url?scp=85188831835&partnerID=8YFLogxK

U2 - 10.1108/IJM-05-2023-0256

DO - 10.1108/IJM-05-2023-0256

M3 - Article

AN - SCOPUS:85188831835

JO - International journal of manpower

JF - International journal of manpower

SN - 0143-7720

ER -