Partial unemployment insurance benefits and the transition rate to regular work |
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Authors: | Tomi Kyyrä |
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Institution: | Government Institute for Economic Research (VATT), PO Box 1279, 00101 Helsinki, Finland |
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Abstract: | In Finland, unemployed workers who are looking for a full-time job but take up a part-time or very short full-time job may qualify for partial unemployment benefits. In exchange for partial benefits, these applicants must continue their search of regular full-time work. This study analyzes the implications of working on partial benefits for subsequent transitions to regular employment. The timing-of-events approach is applied to distinguish between causal and selectivity effects associated with the receipt of partial benefits. The results suggest that partial unemployment associated with short full-time jobs facilitates transitions to regular employment. Also part-time working on partial benefits may help men (but not women) in finding a regular job afterwards. |
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Keywords: | Partial unemployment benefits Temporary work Treatment effect Duration analysis |
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