Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus
The Effect of Receiving Supplementary UI Benefits on Unemployment Duration
(), Pierpaolo Parrotta
() and Michael Rosholm
Abstract: 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
Keywords: Unemployment benefits; Part-time work; Lock-in effect; Treatment effect; Duration analysis; (follow links to similar papers)
JEL-Codes: C41; J65; (follow links to similar papers)
42 pages, January 1, 2009
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- This paper is forthcoming as:
Kyyrä, Tomi, Pierpaolo Parrotta and Michael Rosholm, 'The Effect of Receiving Supplementary UI Benefits on Unemployment Duration', Labour Economics.
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