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English Summaries
Työpoliittinen aikakauskirja 3/2018
job-seekers to work without losing their entire unemployment benefit. This article describes how working during unemployment benefit receipt has developed since 2010. We use large register datasets and the SISU microsimulation model to assess how common incentive prob- lems among the unemployed are and how they have evolved after the introduction of the earn- ings disregard.
Our analysis shows that the incentives to work part time or on a temporary basis while on unem- ployment benefits are generally good. The incen- tives were quite good already prior to the intro- duction of the earnings disregard due to the generosity of partial unemployment benefits. Incentive problems are rare among unemployed who are eligible for earnings-related unemploy- ment benefits. Most problems with incentives arise when recipients of basic unemployment allowance or labor market subsidy are also enti- tled to means-tested other benefits.
Working while on unemployment benefits is the most prevalent among recipients of basic unem- ployment allowance. Among recipients of labor market subsidy it is predominantly the younger unemployed who take up part-time and tempo- rary jobs. Women work while on unemployment benefits more often than men. In all groups par- tial employment during unemployment benefit receipt has become more common since 2010 and has been growing steadily also after the introduc- tion of the earnings disregard.
This article discusses the ongoing employment growth and aspects related to it, as well as pre- conditions for employment growth in the coming
How long could the rapid employment growth go on?
Johanna Alatalo, Lic. Sc. (Econ.), Ministerial Adviser, Ministry of Economic Affairs and Employment
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