Can Work Sharing Sustain Employment During Economic Downturn? Evidence from Brazil

Work sharing policies seek to reduce the work schedule of individuals as a means to preserve their jobs. This paper assesses the impact of the short-lived Employment Protection Program (EPP), the Brazilian work sharing program that was active between 2015 and 2018, on employment. Using administrative data of the program, the results show that establishments that participate in the program present higher employment levels than non-participant establishments after the program. Furthermore, the effect of EPP on employment is not immediate and increases overtime