Banking of Work Hours as a Job Retention Strategy
The 'banking' of work hours is a strategy for job retention during economic downturns. Under this arrangement, firms reduce employee hours to match lower demand but continue to pay them for more hours than they work. These unworked hours are recorded as a time liability, which employees repay by working additional hours without extra pay when business activity recovers. This mechanism was a central part of Germany's policy to maintain employment during the 2007-2009 financial crisis.
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Introduction to Macroeconomics Course
Ch.3 Aggregate demand and the multiplier model - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Germany's Co-insurance Model During the 2007-2009 Financial Crisis
Banking of Work Hours as a Job Retention Strategy
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Learn After
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Employee Trade-offs in Work-Hour Banking
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Labor Union Perspective on Work-Hour Banking