This paper investigates the extent to which differences in the probability to exit from part-time unemployment to a full-time job are accountable for by spatial contextual factors and individual characteristics. To correctly incorporate contextual effects, a multilevel analysis is applied using a mixed-effects model to explore whether contextual factors account for differences in the probability of transition to full-time employment between individuals with different characteristics. The results indicate that there is a contextual effect and that there are some spatial spill-over effects from neighbouring municipalities, and that the unemployment rate partly explains the context variability. Furthermore, the contextual effect is found to be especially large for individuals without a university degree.