Short-time Work and Unemployment: Long-term Effects on Workers' Labour-market Outcomes

Their empirical framework combines propensity score matching and an event-study approach, comparing career trajectories before and after these two types of employment disruptions. Their preliminary results show that male and female workers face increased work disruptions post-unemployment, leading to higher unemployment probabilities later. In contrast, episodes of STW do not affect employment stability afterwards, neither for men nor for women. Women experience slightly higher relative initial earnings reductions post-unemployment but less so after STW episodes. Taken together, their preliminary results show that employees experiencing short-time work episodes show more stable employment histories after the event than employees experiencing unemployment, and this pattern is similar for men and women.