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Does subsidized part-time employment help unemployed workers to find full-time employment?

Tomi Kyyrä (), Jose Arranz () and Carlos Garcia-Serrano ()

Labour Economics, 2019, vol. 56, issue C, 68-83

Abstract: We study whether part-time work acts as a bridge towards full-time work for unemployed workers in Spain. We consider a time period when firms were encouraged to create part-time jobs by cutting employers’ social security contributions. We follow the timing-of-event approach and estimate the causal effect of part-time work on the exit rate to full-time work using a multivariate duration model. We find that, after a cut in the hiring cost of part-timers, taking up a short part-time job reduced the expected time until next full-time job in the recession years. However, after an additional cut, part-time working has prolonged the expected time without a full-time job.

Keywords: Part-time employment; Mixed proportional hazard model; Stepping-stone effect; Lock-in effect; Indirect labour costs (search for similar items in EconPapers)
JEL-codes: J64 J65 (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1016/j.labeco.2018.12.001

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