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Unemployment Insurance and Underemployment

Link to article:

[PDF]

Authors:

Godøy, Anna and Knut Røed

Year:

2014

Reference:

Andre skrifter
IZA Discussion Paper No. 7913

Summary

Should unemployment insurance (UI) systems provide coverage for underemployed job seekers? Based on a statistical analysis of Norwegian unemployment spells, we conclude that the answer to this question is yes. Allowing insured job seekers to retain partial UI benefits during periods of insufficient part-time work not only reduces UI expenditures during the part-time work period; it also unambiguously reduces the time until a regular selfsupporting job is found. Probable explanations are that even small temporary part-time jobs provide access to useful vacancy-information and that such jobs are used by employers as a screening device when hiring from the unemployment pool.

JEL:

C41, J65

Keywords:

unemployment insurance, part-time work, duration analysis

Project:

Oppdragsgiver: Norges forskningsråd
Oppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway