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We enquire whether short-time work (STW) avoids firings as intended by policymakers and is associated with unintended side effects by subsidising some establishments and locking in some employees. Additionally, where it was feasible, establishments used working from home (WFH) to continue working without risking an increase in COVID-19 infections and allowing employed parents to care for children attending closed schools.

Using 21 waves of German high-frequency establishment panel data collected during the COVID-19 crisis, we investigate how STW and WFH are associated with hirings, firings, resignations and excess labour turnover (or churning).

Our results show the important influences of STW and working from home on employment dynamics during the pandemic. By means of STW, establishments are able to avoid an increase in involuntary layoffs and hiring decreases significantly. In contrast, WFH is associated with a rise in resignations, as can be expected from a theoretical perspective.

While most of the literature on STW and WFH is unrelated and remains descriptive, we consider them in conjunction and conduct panel data analyses. We apply data and methods that allow for the dynamic pattern of STW and working from home during the pandemic. Furthermore, our data include relevant establishment-level variables, such as the existence of a works council, employee qualifications, establishment size, the degree to which the establishment was affected by the COVID-19 crisis, industry affiliation and a wave indicator for the period the survey was conducted.

It is analyzed whether working from home improves or impairs the job satisfaction and the work–life balance and under which conditions.

Blocks of influences on job satisfaction and work–life balance – personal traits, job characteristics, skills and employment properties – are estimated separately and in combination. To select the variables, the least angle regression is applied. The entropy balancing approach is used to determine causal effects. The study investigates whether imbalances are determined by private or job influences, whether firm-specific regulations and the selected control group affect the results and whether it only takes place during leisure time.

No clear effects of remote work on job satisfaction are revealed, but the impact on work–life balance is generally negative. If the imbalance is conditioned by private interests, this is not corroborated in contrast to job conditioned features. Employees working from home are happier than those who want to work at home, job satisfaction is higher and work–life balance is not worse under a strict contractual agreement than under a nonbinding commitment.

A wide range of personality traits, skills, employment properties and job characteristics are incorporated as determinants. The problem of causality is investigated. It is analyzed whether the use of alternative control and treatment groups leads to different results. The empirical investigation is based on new German data with three waves.

(a) Discussion Papers from the International Institute of Management, Platz der Luftbrucke 1–3, D‐1000 Berlin 42

In many European countries labor markets became more and more demand oriented. However, the average use of recruiting abroad is still low. From a firm perspective, recruiting abroad comes at substantial costs and risks. The purpose of this paper is to identify mechanisms leading to the use of recruiting from abroad.

Effects are retrieved from simple OLS regressions as well as from demand-sided instrumental variable specifications applied to a large German establishment-level dataset.

The share of foreign workers in the contemporary work force enhances recruiting abroad, which is in line with theoretical considerations that foreigners indicate of successful international assignments. The results also indicate that internationally operating businesses more likely recruit from abroad. Furthermore, the author finds that market forces are relevant for the strategy to recruit abroad. Both, the regional scarcity of labor and a high demand for skilled labor affect the employer’s decision to recruit abroad.

The results indicate that internationally oriented businesses more likely recruit abroad. Furthermore, labor market mechanisms, such as scarcities, are functional and foster the use of foreign labor markets.

This study adds to the literature by providing first empirical evidence on recruiting abroad, which is the use of foreign labor markets.