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Does subsidized part-time employment help unemployed workers to find full-time employment?

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  • Kyyrä, Tomi
  • Arranz, José M.
  • García-Serrano, Carlos

Abstract

We study whether part-time work acts as a bridge towards full-time work for unemployed workers in Spain. We consider a time period when firms were encouraged to create part-time jobs by cutting employers’ social security contributions. We follow the timing-of-event approach and estimate the causal effect of part-time work on the exit rate to full-time work using a multivariate duration model. We find that, after a cut in the hiring cost of part-timers, taking up a short part-time job reduced the expected time until next full-time job in the recession years. However, after an additional cut, part-time working has prolonged the expected time without a full-time job.

Suggested Citation

  • Kyyrä, Tomi & Arranz, José M. & García-Serrano, Carlos, 2019. "Does subsidized part-time employment help unemployed workers to find full-time employment?," Labour Economics, Elsevier, vol. 56(C), pages 68-83.
    • Handle: RePEc:eee:labeco:v:56:y:2019:i:c:p:68-83
    DOI: 10.1016/j.labeco.2018.12.001
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    References listed on IDEAS

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    3. Caroline Hall & Inés Hardoy & Kristine Simson, 2024. "Policies for young adults with reduced work capacity. Labour market impact in Sweden and Norway," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(1), pages 1-33, March.
    4. Carreño, José Gabo & Uras, Burak, 2024. "Macro welfare effects of flexible labor contracts," European Economic Review, Elsevier, vol. 161(C).

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    More about this item

    Keywords

    Part-time employment; Mixed proportional hazard model; Stepping-stone effect; Lock-in effect; Indirect labour costs;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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