Does part-time work help unemployed workers to find full-time work? Evidence from Spain

• Tomi Kyyrä ^[2] ; José M. Arranz ^[1] ; Carlos García-Serrano ^[1]
  1. [1] Universidad de Alcalá

     Universidad de Alcalá

     Alcalá de Henares, España

     
  2. [2] VATT Institute for Economic Research, Helsinki, Finlandia
• Localización: Papeles de trabajo del Instituto de Estudios Fiscales. Serie economía, ISSN 1578-0252, Nº 5, 2017, págs. 4-36
• Idioma: inglés
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• Resumen

  • This paper examines whether part-time work acts as a bridge towards full-time work for unemployed workers in Spain. 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. Our findings show that the exit rate to full-time work declines when working part time (lock-in effect) but in-creases afterwards (stepping-stone effect), implying a trade-off between the two opposite effects. The resulting net effect of part-time work on the expected time until full-time work is positive in most cases, leading to longer spells without full-time work. This undesirable effect has increased over time, so that the value of temporary part-time work as a pathway to full-time work for the unemployed has reduced.