%0 Report %A Godoy, Anna %A Røed, Knut %T Unemployment Insurance and Underemployment %D 2014 %8 2014 Jan %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 7913 %U https://www.iza.org/publications/dp7913 %X 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; 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. %K duration analysis %K unemployment insurance %K part-time work