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The Effects of Marginal Employment on Subsequent Labour Market Outcomes

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  • Böheim René

    (Johannes Kepler University Linz,Linz, Austria)

  • Weber Andrea

    (University of Mannheim,Mannheim, Germany)

Abstract

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.

Suggested Citation

  • Böheim René & Weber Andrea, 2011. "The Effects of Marginal Employment on Subsequent Labour Market Outcomes," German Economic Review, De Gruyter, vol. 12(2), pages 165-181, May.
    • Handle: RePEc:bpj:germec:v:12:y:2011:i:2:p:165-181
    DOI: 10.1111/j.1468-0475.2010.00514.x
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    Cited by:

    1. Matthias Collischon & Kamila Cygan-Rehm & Regina T. Riphahn, 2021. "Employment effects of payroll tax subsidies," Small Business Economics, Springer, vol. 57(3), pages 1201-1219, October.
    2. Matteo Picchio & Mattia Filomena, 2021. "Are Temporary Jobs Stepping Stones Or Dead Ends? A Meta-Analytical Review Of The Literature," Working Papers 455, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    3. René Böheim & Andrea Weber, 2011. "The Effects of Marginal Employment on Subsequent Labour Market Outcomes," German Economic Review, Verein für Socialpolitik, vol. 12(2), pages 165-181, May.
    4. Florent Fremigacci & Antoine Terracol, 2013. "Subsidized temporary jobs: lock-in and stepping stone effects," Applied Economics, Taylor & Francis Journals, vol. 45(33), pages 4719-4732, November.
    5. Freier, Ronny & Steiner, Viktor, 2007. "‘Marginal Employment’: Stepping Stone or Dead End? Evaluating the German Experience," IZA Discussion Papers 3175, Institute of Labor Economics (IZA).
    6. Ronny Freier & Viktor Steiner, 2007. ""Marginal Employment": Stepping Stone or Dead End? Evaluating the German Experience," Discussion Papers of DIW Berlin 744, DIW Berlin, German Institute for Economic Research.
    7. Carrillo-Tudela, Carlos & Launov, Andrey & Robin, Jean-Marc, 2021. "The fall in german unemployment: A flow analysis," European Economic Review, Elsevier, vol. 132(C).
    8. Nathalie Havet & Xavier Joutard & Alexis Penot, 2019. "Les pratiques d’activité réduite et leurs impacts sur les trajectoires professionnelles : une revue de la littérature," Revue d'économie politique, Dalloz, vol. 129(1), pages 11-47.
    9. repec:spo:wpmain:info:hdl:2441/1v5orglviq8epaecq1buersvk5 is not listed on IDEAS
    10. Kyyrä, Tomi & Arranz, José M. & García-Serrano, Carlos, 2019. "Does subsidized part-time employment help unemployed workers to find full-time employment?," Labour Economics, Elsevier, vol. 56(C), pages 68-83.
    11. Fackler, Daniel & Stegmaier, Jens & Weigt, Eva, 2019. "Does extended unemployment benefit duration ameliorate the negative employment effects of job loss?," Labour Economics, Elsevier, vol. 59(C), pages 123-138.
    12. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," Working Papers hal-03881625, HAL.
    13. Caliendo, Marco & Künn, Steffen & Uhlendorff, Arne, 2016. "Earnings exemptions for unemployed workers: The relationship between marginal employment, unemployment duration and job quality," Labour Economics, Elsevier, vol. 42(C), pages 177-193.
    14. Freier, Ronny & Steiner, Viktor, 2008. "Marginal employment: Stepping stone or dead end? : evaluating the German experience," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 223-243.
    15. Freier, Ronny & Steiner, Viktor, 2008. "Marginal employment: Stepping stone or dead end? : evaluating the German experience," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 223-243.
    16. Jacobo Muñoz-Comet & Stephanie Steinmetz, 2020. "Trapped in Precariousness? Risks and Opportunities of Female Immigrants and Natives Transitioning from Part-Time Jobs in Spain," Work, Employment & Society, British Sociological Association, vol. 34(5), pages 749-768, October.
    17. Kyyrä, Tomi & Arranz, José María & García-Serrano, Carlos, 2017. "Does Part-Time Work Help Unemployed Workers to Find Full-Time Work? Evidence from Spain," IZA Discussion Papers 10770, Institute of Labor Economics (IZA).
    18. repec:hal:spmain:info:hdl:2441/1v5orglviq8epaecq1buersvk5 is not listed on IDEAS
    19. Freier, Ronny & Steiner, Viktor, 2008. "Marginal employment: Stepping stone or dead end? : evaluating the German experience," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 223-243.
    20. Helmut Hofer & Andrea Weber, 2006. "Active Labor Market Policy in Austria: Practice and Evaluation Results," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 155-167.
    21. Hélène Benghalem & Pierre Cahuc & Pierre Villedieu, 2022. "The Lock-in Effects of Part-Time Unemployment Benefits," SciencePo Working papers Main hal-03881625, HAL.

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    More about this item

    Keywords

    Marginal employment; atypical employment; labour supply; propensity score matching;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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