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The Effect of Receiving Supplementary UI Benefits on Unemployment Duration

Author

Listed:
  • T. Kyyra

    (Department of Economics and Business Economics [Aarhus] - Aarhus University [Aarhus])

  • Pierpaolo Parrotta

    (Department of Economics and Business Economics [Aarhus] - Aarhus University [Aarhus])

  • M. Rosholm

    (Department of Economics and Business Economics [Aarhus] - Aarhus University [Aarhus])

Abstract

We consider the consequences of working part-time and receiving supplementary benefits for part-time unemployment in the Danish labor market. Following the timing-of-events approach we estimate causal effects of part-time work with supplementary benefits on the hazard rate out of unemployment insurance benefit receipt. We find evidence of a negative in-treatment effect and a positive post-treatment effect, both of which vary across different groups of 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).

Suggested Citation

  • T. Kyyra & Pierpaolo Parrotta & M. Rosholm, 2013. "The Effect of Receiving Supplementary UI Benefits on Unemployment Duration," Post-Print hal-01514533, HAL.
    • Handle: RePEc:hal:journl:hal-01514533
    DOI: 10.1016/j.labeco.2013.02.002
    Note: View the original document on HAL open archive server: https://hal.science/hal-01514533
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    More about this item

    Keywords

    Unemployment benefits; Part-time work; Lock-in effect; Treatment effect; Duration analysis;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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