1 Department of Economics and Business Economics, Aarhus BSS, Aarhus University2 Department of Economics and Business Economics - TrygFonden's Centre for Child Research, Department of Economics and Business Economics, Aarhus BSS, Aarhus University3 Government Institute for Economic Research, Helsinki, Finland4 Department of Economics, University of Lausanne, Switzerland5 Department of Economics and Business Economics, Aarhus BSS, Aarhus University
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).