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IZA Discussion Paper No. 10770
May 2017
Does Part-Time Work Help Unemployed Workers to Find Full-Time Work? Evidence from Spain

published as "Does Subsidized Part-Time Employment Help Unemployed Workers to Find Full-Time Employment?" in: Labour Economics, 2019, 56, 68-83

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 increases 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.

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Mark Fallak
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+352 585-855-526
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Olga Nottmeyer
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+352 585-855-501
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Christina Gathmann
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