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Title page
Contents
Abstract 3
1. Introduction 4
2. Institutions and Earnings Disregard Reforms 10
2.1. Unemployment Benefits and Housing Allowance 11
2.2. Earnings Disregard Reforms and Changes in Incentives 15
2.3. Other relevant reforms 22
3. Data 24
4. Combining Benefits and Part-time Work Over Time 25
5. Analysis of Earnings Disregard Reforms 32
5.1. Methods and Definitions 32
5.2. Results 37
6. Discussion 51
References 53
Appendix 55
Table 1. Descriptive statistics, 2012-2018 25
Table 2. Regression estimates for part-time work, earnings-related and flat-rate UB recipients 46
Table 3. Regression estimates for full-time employment, earnings-related UB recipients 48
Table 4. Regression estimates for full-time employment, flat-rate UB recipients 49
Table 5. Heterogeneity results: working part-time 50
Table 6. Heterogeneity results: days worked in the next 24 months 50
Figure 1. Participation tax rates for single-person households, 2013-2015 17
Figure 2. Participation tax rates for two-person households in 2013-2015 19
Figure 3. Full-time and part-time unemployed individuals, 2000-2021 27
Figure 4. Share of part-time unemployed workers in different subgroups of all UB recipients, 2000-2022 28
Figure 5. Share of part-time work days days by occupation and benefit type, 2010-2020 31
Figure 6. Development of the share of part-time unemployed workers, earnings-related and flat-rate UB recipients 38
Figure 7. Development of the share of part-time unemployed workers, panel data analysis 40
Figure 8. Earnings from part-time work, earnings-related and flat-rate UB recipients 41
Figure 9. Days in full-time employment within the next 24 months, earnings-related and flat-rate UB recipients 43
Figure 10. Likelihood of permanent employment in the future, earnings-related UB recipients 44
Figure 11. Likelihood of permanent employment in the future, flat-rate UB recipients 45
Table A1. Simulated eligibility for housing allowance (HA) for different groups 64
Table A2. Descriptive statistics for earning-related UB recipients with and without HA 65
Table A3. Descriptive statistics for flat-rate UB recipients with and without HA 65
Table A4. Regression estimates for part-time work, earnings-related and flat-rate UB recipients using panel data 65
Table A5. Regression estimates for full-time employment within the next 12 months, earnings-related UB recipients 66
Table A6. Regression estimates for full-time employment within the next 12 months, flat-rate UB recipients 66
Table A7. Regression estimates for full-time employment within the next 13-24 months, earnings-related UB recipients 67
Table A8. Regression estimates for full-time employment within the next 13-24 months, flat-rate UB recipients 67
Figure A1. Share of part-time workers in Finland, 2000-2020 55
Figure A2. Changes in unemployment by UI funds, 2012-2020 56
Figure A3. Distributions of part-time earnings when receiving partial UB in 2013, 2014 and 2016, earnings-related and flat-rate UB recipients 57
Figure A4. Distributions of part-time earnings when receiving UB in 2013, earnings-related and flat-rate UB recipients with and without housing allowance 58
Figure A5. Development of the share of part-time unemployed workers without controls 59
Figure A6. Shares of treatment (UB+HA) and control (UB only) groups over time for earnings-related and flat-rate UB recipients, 2012-2018 60
Figure A7. Development of the share of part-time unemployed workers when HA recipient status is based on simulated eligibility 61
Figure A8. Days in full-time employment within the next 12 months, earnings-related and flat-rate UB recipients 62
Figure A9. Days in full-time employment within the next 13-24 months, earnings-related and flat-rate UB recipients 63
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