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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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  16. Gaure, Simen & Røed, Knut & Zhang, Tao, 2005. "Time and Causality: A Monte Carlo Assessment of the Timing-of-Events Approach," Memorandum 19/2005, Oslo University, Department of Economics.
  17. David H. Autor & Susan Houseman, 2005. "Do Temporary Help Jobs Improve Labor Market Outcomes for Low-Skilled Workers? Evidence from 'Work First'," NBER Working Papers 11743, National Bureau of Economic Research, Inc.
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