Department of Economics and Business Economics

The effect of receiving supplementary UI benefits on unemployment duration

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  • Kyyrä, Tomi, Government Institute for Economic Research, Helsinki, Finland, Finland
  • Parrotta, Pierpaolo, Department of Economics, University of Lausanne, Switzerland, Switzerland
  • Michael Rosholm
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).
Original languageEnglish
JournalLabour Economics
Pages (from-to)122-133
Number of pages12
Publication statusPublished - 2013

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