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The Effect of Receiving Supplementary UI Benefits on Unemployment Duration

  • Kyyrä, Tomi


    (Government Institute for Economic Research)

  • Parrotta, Pierpaolo


    (Department of Economics, Aarhus School of Business)

  • Rosholm, Michael


    (Department of Economics, Aarhus School of Business)

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

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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 09-1.

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Length: 42 pages
Date of creation: 01 Jan 2009
Date of revision:
Publication status: Forthcoming as Kyyrä, Tomi, Pierpaolo Parrotta and Michael Rosholm, 'The Effect of Receiving Supplementary UI Benefits on Unemployment Duration' in Labour Economics, 2013.
Handle: RePEc:hhs:aareco:2009_001
Contact details of provider: Postal:
The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Phone: +45 89 486396
Fax: +45 8615 5175
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