TY  - JOUR
AB  - Purpose Working time accounts (WTAs) allow firms to smooth hours worked over time. The purpose of this paper is to analyze whether this increase in flexibility has also affected how firms adjust employment in Germany over the business cycle.Design/methodology/approach This paper uses rich microeconomic panel data and fixed effects estimations to compare the employment adjustment of firms with and without WTAs.Findings The authors show that firms with WTAs show a similar separation and hiring behavior in response to revenue changes as firms without WTAs. One possible explanation is that firms without WTAs used short-time work (STW) to adjust hours worked instead. However, the authors find that firms with WTAs use STW more than firms without WTAs.Originality/value These findings call into question the popular hypothesis that WTAs were the key driver of the unusually small increase in German unemployment in the Great Recession.
VL  - 38
IS  - 7
SN  - 0143-7720
DO  - 10.1108/IJM-05-2017-0100
UR  - https://doi.org/10.1108/IJM-05-2017-0100
AU  - Balleer Almut
AU  - Gehrke Britta
AU  - Merkl Christian
PY  - 2017
Y1  - 2017/01/01
TI  - Some surprising facts about working time accounts and the business cycle in Germany
T2  - International Journal of Manpower
PB  - Emerald Publishing Limited
SP  - 940
EP  - 953
Y2  - 2024/04/19
ER  -