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The lock-in effects of part-time unemployment benefits | VOX, CEPR Policy Portal

Claudio Michelacci, Hernán Ruffo Unemployment insurance plays an increasingly large role in the labour market (Boone et al. 2017, Marinescu 2016, Midões and Serék 2021). At the same time, part-time unemployment benefits provided to persons working non-regular jobs while seeking a regular job play an increasingly important role in unemployment insurance systems. The rise in the incidence of such alternative work arrangements as temporary work, part-time work, and self-employment – as well as the new kinds of work relationships emerging in the online gig economy – has increased part-time unemployment take-up in several countries. In France, almost half of all unemployment-benefit recipients work while on claim during their unemployment spell. Part-time unemployment benefits are also widespread in Belgium, Finland, Austria, and Germany (Ek Spector 2015, Cahuc 2018).

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