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Comment by mm89 | Hacker News Reader

Kurzarbeit is described on Google as "Short-time working or short time is a situation or system in which civilian employees agree to or are forced to accept a reduction in working time and pay.".

That's different than a layoff. I'd happily accept a reduction in pay and work hours over a 100% pay cut and temporary layoff, if that's what it took to keep my company alive during a temporary economic downturn.

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Yes. Kurzarbeit means the company keeps people on its payroll but doesn't give them full hours. The government tops their pay back up to 100% but the company is saved from carrying the full load. The company keeps its employees and all the valuable training they received, allowing it to get back to full speed once the downturn is over.

A free market is very inept at solving this problem because no single company is going to make the long term investment required to foresee future recessions and implement a war chest sufficient to offer Kurzarbeit. But the state can think ahead and generate a public good from this kind of program.

> The government tops their pay back up to 100%

Not quite, I think the government makes up for 60% or so of the income difference, but I'll have to look it up later myself.

Thank you for the correction.

Kurzarbeit is described as "Short-time working or short time is a situation or system in which civilian employees agree to or are forced to accept a reduction in working time and pay." on Wikipedia.

That article also states that you can participate in training, which will actually give you the chance to maintain your income. Pretty cool, I think.

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