Template-Type: ReDIF-Paper 1.0
Author-Name: Salla Kalin
Author-Name-First: Salla
Author-Name-Last: Kalin
Author-Email: salla.kalin@labore.fi	
Author-Workplace-Name: Labour Institute for Economic Research Labore
Author-Name: Tomi Kyyrä
Author-Name-First: Tomi
Author-Name-Last: Kyyrä
Author-Email: tomi.kyyra@vatt.fi
Author-Workplace-Name: VATT Institute for Economic Research
Author-Name: Tuomas Matikka
Author-Name-First: Tuomas
Author-Name-Last: Matikka
Author-Email: tuomas.matikka@vatt.fi
Author-Workplace-Name: VATT Institute for Economic Research
Title: Combining Part-time Work and Social Benefits: Empirical Evidence from Finland 
Abstract: We use detailed, population-wide data from Finland to provide evidence of the impact of earnings disregard policies on part-time work during unemployment spells.The share of part-time workers among benefit recipients increased sharply from 10% to 18% over a few years after the implementation of earnings disregards in unemployment beneifts and housing allowances, which allowed individuals to earn up to 300 euros per month without reductions in their benefits. Using variation in the impact of the reforms on incentives between individuals eligible for different types of benefits, we estimate a 21–30% increase in participation in part-time work due to the implementation of earnings disregards. On average, we find no economically
sizable effects of the earnings disregards on future full-time employment or the likelihood of leaving unemployment benefits, but find moderate positive employment effects among those unemployed individuals who are more attached to the labor market.
Length: 60
Creation-Date: 2025-09
Publication-Status: Published in FIT Working Paper Series, Finnish Center of Excellence in Tax Systems Research
File-URL: https://verotutkimus.fi/verotutkimus/wp-content/uploads/2025/09/FIT-WP-36-Kalin-Kyyra-Matikka-Earnings-Disregards.pdf
File-Format: Application/pdf
File-Function: First version, 2025
Number: 36
Classification-JEL: H24; J21; J22
Keywords: labor supply; social benefits; part-time work; earnings disregards
Handle: RePEc:fit:wpaper:36