Part-time unemployment benefits lead to job lock-in, reducing labor supply.
The study looked at how part-time unemployment benefits affect people in France. They sent emails to job seekers to inform them about the benefits. The information made people more likely to work while on benefits, but it also made it harder for them to find a job. This shows that part-time benefits can keep people stuck in unemployment. Lowering taxes on earnings while on benefits doesn't make people more likely to work.