Unemployment Insurance and Underemployment
Link to article:
Authors:
Godøy, Anna og Knut Røed
Year:
2016
Reference:
Volume 30, Issue 2, pages 158-179Summary
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, but 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.
JEL:
C41;J65
Project:
Oppdragsgiver: Norges forskningsrådOppdragsgivers prosjektnr.: 202513
Frisch prosjekt: 1172 - Social Insurance and Labor Market Inclusion in Norway