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Does Part-Time Work Help Unemployed Workers to Find Full-Time Work? Evidence from Spain

Listed author(s):
  • Kyyrä, Tomi

    ()

    (VATT, Helsinki)

  • Arranz, José María

    ()

    (Universidad de Alcalá)

  • García-Serrano, Carlos

    ()

    (Universidad de Alcalá)

This paper examines whether part-time work acts as a bridge towards full-time work for unemployed workers in Spain. 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. Our findings show that the exit rate to full-time work declines when working part time (lock-in effect) but increases afterwards (stepping-stone effect), implying a trade-off between the two opposite effects. The resulting net effect of part-time work on the expected time until full-time work is positive in most cases, leading to longer spells without full-time work. This undesirable effect has increased over time, so that the value of temporary part-time work as a pathway to full-time work for the unemployed has reduced.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10770.

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Length: 44 pages
Date of creation: May 2017
Handle: RePEc:iza:izadps:dp10770
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