SOCIALIZATION OF EMPLOYERS' COSTS DURING ECONOMIC RECESSIONS: THE USE OF SHARED WORK UNEMPLOYMENT INSURANCE TO KEEP SKILLED WORKERS

Abstract

In the late 1970s underemployment as a result of recession began to receive attention with several states in the USA legislating for reduced hours compensation. This article examines California's Shared Work Unemployment Insurance (SWUI) programme and the reaction of firms to it. Under SWUI rules employers voluntarily enrol workers for benefit eligibility; it is not a short‐term worker's right to receive benefit. The labour market context of employers who choose to use SWUI as an alternative to lay‐offs is discussed