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Unemployment Insurance and Underemployment

Anna Godoy () and Knut Røed ()
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Anna Godoy: Institute for Social Research, Oslo

No 7913, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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 self-supporting 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.

Keywords: duration analysis; unemployment insurance; part-time work (search for similar items in EconPapers)
JEL-codes: C41 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ias and nep-lab
Date: 2014-01
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Journal Article: Unemployment Insurance and Underemployment (2016) Downloads
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