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The effect of receiving supplementary UI benefits on unemployment duration

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Author Info
Tomi Kyyrä
Pierpaolo Parrotta
Michael Rosholm

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Abstract

We consider the consequences of working part-time on supplementary unemployment insurance benefits in the Danish labour market. Following the ?timing-of-events? approach we estimate causal effects of subsidized part-time work on the hazard rate out of unemployment insurance benefit receipt. We find evidence of a negative lock-in effect and a positive post-treatment effect, both of which vary across individuals. The resulting net effect on the expected unemployment duration is positive for some groups (e.g. married women) and negative for others (e.g. young workers).

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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Working Papers with number 1.

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Date of creation: 23 Feb 2009
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Handle: RePEc:fer:wpaper:1

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Related research
Keywords: Unemployment benefits; part-time work; lock-in effect; treatment effect; duration analysis;

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Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
J65 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment Insurance; Severance Pay; Plant Closings

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References listed on IDEAS
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  1. Erling Rasmussen & Jens Lind & Jelle Visser, 2004. "Divergence in Part-Time Work in New Zealand, the Netherlands and Denmark," British Journal of Industrial Relations, Blackwell Publishers Ltd/London School of Economics, vol. 42(4), pages 637-658, December. [Downloadable!] (restricted)
  2. Michael Rosholm & Jonas Staghøj & Michael Svarer, 2007. "A Statistical Programme Assignment Model," Economics Working Papers 2007-16, School of Economics and Management, University of Aarhus. [Downloadable!]
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  3. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," Working Papers 08-14, University of Aarhus, Aarhus School of Business, Department of Economics. [Downloadable!]
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  4. Michael Svarer, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," Economics Working Papers 2007-10, School of Economics and Management, University of Aarhus. [Downloadable!]
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  5. McCall, Brian P, 1997. "The Determinants of Full-Time versus Part-Time Reemployment Following Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 714-34, October. [Downloadable!] (restricted)
  6. Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June. [Downloadable!] (restricted)
  7. Tomi Kyyrä, 2008. "Partial Unemployment Insurance Benefits and the Transition Rate to Regular Work," Discussion Papers 440, Government Institute for Economic Research Finland (VATT). [Downloadable!]
  8. McCall, Brian P, 1996. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Econometrica, Econometric Society, vol. 64(3), pages 647-82, May. [Downloadable!] (restricted)
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This page was last updated on 2009-11-13.

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