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Partial Unemployment Insurance Benefits and the Transition Rate to Regular Work

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  • Kyyrä, Tomi

Abstract

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. We analyze the implications of the experiences of partial unemployment for subsequent transitions to regular employment. We apply the "timing of events" approach to distinguish between causal and selectivity effects associated with the receipt of partial benefits. Our findings suggest that partial unemployment associated with short full-time jobs facilitates transitions to regular employment. Also part-time working on partial benefits may help in finding a regular job afterwards.

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  • Kyyrä, Tomi, 2008. "Partial Unemployment Insurance Benefits and the Transition Rate to Regular Work," Discussion Papers 440, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:440
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    Cited by:

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    2. Valerie Koh & Gillian Koh & Donald Low & Tan Min Wei, 2015. "The Politics of Sustaining Inclusive Growth and Social Inclusion," Working Papers id:7244, eSocialSciences.
    3. Kyyrä, Tomi & Parrotta, Pierpaolo & Rosholm, Michael, 2013. "The effect of receiving supplementary UI benefits on unemployment duration," Labour Economics, Elsevier, vol. 21(C), pages 122-133.
    4. Anna Godøy & Knut Røed, 2016. "Unemployment Insurance and Underemployment," LABOUR, CEIS, vol. 30(2), pages 158-179, June.
    5. Susanne Ek & Bertil Holmlund, 2015. "Part-time unemployment and optimal unemployment insurance," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(2), pages 201-223, April.
    6. Satu Ojala & Jouko Nätti & Liudmila Lipiäinen, 2018. "Types of Temporary Employment: An 8-Year Follow-Up of Labour Market Attachment," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(1), pages 141-163, July.
    7. 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.
    8. Kalin, Salla & Kyyrä, Tomi & Matikka, Tuomas, 2023. "Combining Part-time Work and Social Benefits: Empirical Evidence from Finland," Working Papers 159, VATT Institute for Economic Research.
    9. Caliendo, Marco & Künn, Steffen & Uhlendorff, Arne, 2016. "Earnings exemptions for unemployed workers: The relationship between marginal employment, unemployment duration and job quality," Labour Economics, Elsevier, vol. 42(C), pages 177-193.
    10. Susanne Ek Spector, 2022. "Should unemployment insurance cover partial unemployment?," IZA World of Labor, Institute of Labor Economics (IZA), pages 199-199, June.
    11. Stephan, Gesine & van den Berg, Gerard & Homrighausen, Pia, 2016. "Randomizing information on a targeted wage support program for older workers: A field experiment," VfS Annual Conference 2016 (Augsburg): Demographic Change 145487, Verein für Socialpolitik / German Economic Association.
    12. Vikström, Johan & Rosholm, Michael & Svarer, Michael, 2011. "The Relative Efficiency of Active Labour Market Policies: Evidence from a Social Experiment and Non-Parametric Methods," IZA Discussion Papers 5596, Institute of Labor Economics (IZA).
    13. Tito Boeri & Pierre Cahuc, 2023. "Labor Market Insurance Policies in the Twenty-First Century," Annual Review of Economics, Annual Reviews, vol. 15(1), pages 1-22, September.
    14. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," Working Papers hal-03881625, HAL.
    15. Tito Boeri & Pierre Cahuc, 2022. "Labor Market Insurance Policies in the XXI Century," SciencePo Working papers Main hal-03878719, HAL.
    16. Altmann, Steffen & Cairo, Sofie & Mahlstedt, Robert & Sebald, Alexander, 2022. "Do Job Seekers Understand the UI Benefit System (And Does It Matter)?," IZA Discussion Papers 15747, Institute of Labor Economics (IZA).
    17. Rainer Eppel & Helmut Mahringer, 2019. "Getting a lot out of a little bit of work? The effects of marginal employment during unemployment," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 46(2), pages 381-408, May.
    18. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," SciencePo Working papers Main hal-03881625, HAL.
    19. Kyyrä, Tomi & Arranz, José María & García-Serrano, Carlos, 2017. "Does Part-Time Work Help Unemployed Workers to Find Full-Time Work? Evidence from Spain," IZA Discussion Papers 10770, Institute of Labor Economics (IZA).
    20. Alexander Mosthaf & Thorsten Schank & Stefan Schwarz, 2024. "Do supplementary jobs for welfare recipients increase the chance of welfare exit? Evidence from Germany," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 63(3), pages 291-324, July.

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