This chapter reviews the existing research on short-time work, a labor market policy that provides temporary wage subsidies to firms in recessions if they reduce hours worked instead of laying off workers. First, it provides institutional background and discusses the role of short-time work in the Great Recession and the COVID-19 recession in OECD countries. Second, it highlights the costs and benefits of the policy from a theoretical perspective. Third, the chapter reviews the existing literature on the effects of short-time work, stressing the challenges in terms of empirical identification and quantification of general equilibrium effects. The majority of studies find evidence of positive effects of the policy on employment but also highlight that short-time work is associated with costs and risks. The chapter concludes with suggestions for effective use of the policy and potential directions for future research.