The Effect of Receiving Supplementary UI Benefits on Unemployment Duration

T. Kyyra (1) , Pierpaolo Parrotta (1) , M. Rosholm (1)

1 Department of Economics and Business Economics [Aarhus]

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

Mots clés: Unemployment benefits; Part-time work; Lock-in effect; Treatment effect; Duration analysis

Domaines: Economies et finances

T. Kyyra, Pierpaolo Parrotta, M. Rosholm. The Effect of Receiving Supplementary UI Benefits on Unemployment Duration. Labour Economics, 2013, 21, pp.122-133. ⟨10.1016/j.labeco.2013.02.002⟩. ⟨hal-01514533⟩