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Hanna Sakhno, David Saha, Garry Poluschkin

Design of short-term work schmemes: International experience and recommendations for Ukraine.

During the Corona crisis, Ukrainian companies reduced their labour costs mainly through layoffs. The lack of an attractive and flexible short-time work system also made adjustments difficult.

  • Ukraine
Policy Briefing
PB 08 | 2021
Labour Market and Migration

Ukraine is one of the few countries in Eastern Europe that introduced short-time working benefits during the pandemic. However, the instrument was hardly used; affected companies mainly relied on layoffs to reduce labour costs. The reasons for this lack of success are mainly to be found in over-bureaucratisation, too short a period of entitlement and too low benefits (below unemployment benefit).

The Policy Briefing presents the Ukrainian short-time allowance scheme in detail and suggests improvements.

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