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Partial Unemployment Insurance Benefits and the Transition Rate to Regular Work

  • Tomi Kyyrä

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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Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 440.

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Date of creation: 19 Mar 2008
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Handle: RePEc:fer:dpaper:440
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