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Partial unemployment insurance benefits and the transition rate to regular work

  • Kyyrä, Tomi

In Finland, unemployed workers who are looking for a full-time job but take up a part-time or very short full-time job may qualify for partial unemployment benefits. In exchange for partial benefits, these applicants must continue their search of regular full-time work. This study analyzes the implications of working on partial benefits for subsequent transitions to regular employment. The timing-of-events approach is applied to distinguish between causal and selectivity effects associated with the receipt of partial benefits. The results suggest that partial unemployment associated with short full-time jobs facilitates transitions to regular employment. Also part-time working on partial benefits may help men (but not women) in finding a regular job afterwards.

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File URL: http://www.sciencedirect.com/science/article/B6V64-4YHP03V-1/2/65a40063a8c19eab0c3545b612445faf
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Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 54 (2010)
Issue (Month): 7 (October)
Pages: 911-930

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Handle: RePEc:eee:eecrev:v:54:y:2010:i:7:p:911-930
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