The Effects of Marginal Employment on Subsequent Labour Market Outcomes

René Böheim, Andrea Weber*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract (may include machine translation)

Unemployed workers in Austria do not lose their unemployment benefits (UI) if they work in a job where their earnings are below a certain threshold ['marginal employment' (ME)]. ME might improve their labour market status by signalling effort, or worsen it through reduced job-search effort. Those who work in ME while claiming UI have less employment and lower earnings afterwards than those who do not. The penalty lessens over time but is still present after three years.

Original languageEnglish
Pages (from-to)165-181
Number of pages17
JournalGerman Economic Review
Volume12
Issue number2
DOIs
StatePublished - May 2011
Externally publishedYes

Keywords

  • Atypical employment
  • J22
  • J64
  • Labour supply
  • Marginal employment
  • Propensity score matching

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