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The Effect of Receiving Supplementary UI Benefits on Unemployment Duration

  • Kyyrä, Tomi

    ()

    (VATT, Helsinki)

  • Parrotta, Pierpaolo

    ()

    (ICN Business School)

  • Rosholm, Michael

    ()

    (Aarhus University)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3920.

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Length: 31 pages
Date of creation: Jan 2009
Date of revision:
Publication status: published in: Labour Economics, 2013, 21, 122-133
Handle: RePEc:iza:izadps:dp3920
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  1. Peter R. Mueser & Carolyn J. Heinrich & Kenneth Troske, 2003. "Welfare to Temporary Work: Implications for Labor Market Outcomes," Working Papers 0308, Department of Economics, University of Missouri.
  2. Tomi Kyyrä, 2008. "Partial Unemployment Insurance Benefits and the Transition Rate to Regular Work," Discussion Papers 440, Government Institute for Economic Research Finland (VATT).
  3. David Autor & Susan Houseman, 2009. "Do Temporary-Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," Upjohn Working Papers and Journal Articles 05-124, W.E. Upjohn Institute for Employment Research.
  4. Bart COCKX & Matteo PICCHIO, 2009. "Are Short-Lived Jobs Stepping Stones to Long-Lasting Jobs ?," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2009004, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  5. Gaure, Simen & Roed, Knut & Zhang, Tao, 2007. "Time and causality: A Monte Carlo assessment of the timing-of-events approach," Journal of Econometrics, Elsevier, vol. 141(2), pages 1159-1195, December.
  6. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking beyond the bridge: How temporary agency employment affects labor market outcomes," IAB Discussion Paper 201009, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  7. Michael Svarer, 2007. "The Effect of Sanctions on the Job Finding Rate: Evidence from Denmark," Economics Working Papers 2007-10, Department of Economics and Business Economics, Aarhus University.
  8. Susanne Ek & Bertil Holmlund, 2011. "Part-Time Unemployment and Optimal Unemployment Insurance," CESifo Working Paper Series 3370, CESifo Group Munich.
  9. Marloes de Graaf-Zijl & Gerard van den Berg & Arjan Heyma, 2011. "Stepping stones for the unemployed: the effect of temporary jobs on the duration until (regular) work," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(1), pages 107-139, January.
  10. Erling Rasmussen & Jens Lind & Jelle Visser, 2004. "Divergence in Part-Time Work in New Zealand, the Netherlands and Denmark," British Journal of Industrial Relations, London School of Economics, vol. 42(4), pages 637-658, December.
  11. Neugart, Michael & Storrie, Donald, 2002. "Temporary work agencies and equilibrium unemployment," Working Papers in Economics 83, University of Gothenburg, Department of Economics.
  12. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," IZA Discussion Papers 3620, Institute for the Study of Labor (IZA).
  13. Alison L Booth & Juan J. Dolado & Jeff Frank, 2002. "Symposium On Temporary Work Introduction," Economic Journal, Royal Economic Society, vol. 112(480), pages F181-F188, June.
  14. McCall, B.P., 1993. "Unemployment Insurance Rules, Joblessness, and Part-Time Work," Papers 93-07, Minnesota - Industrial Relations Center.
  15. Staghøj, Jonas & Svarer, Michael & Rosholm, Michael, 2007. "A Statistical Programme Assignment Model," IZA Discussion Papers 3165, Institute for the Study of Labor (IZA).
  16. Brinch, Christian N., 2007. "Nonparametric Identification Of The Mixed Hazards Model With Time-Varying Covariates," Econometric Theory, Cambridge University Press, vol. 23(02), pages 349-354, April.
  17. McCall, Brian P, 1997. "The Determinants of Full-Time versus Part-Time Reemployment Following Job Displacement," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 714-34, October.
  18. Laura Hartman & Linus Liljeberg & Oskar Skans, 2010. "Stepping-stones, dead-ends, or both? An analysis of Swedish replacement contracts," Empirical Economics, Springer, vol. 38(3), pages 645-668, June.
  19. Jaap H. Abbring & Gerard J. van den Berg, 2003. "The Nonparametric Identification of Treatment Effects in Duration Models," Econometrica, Econometric Society, vol. 71(5), pages 1491-1517, 09.
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