Unemployment benefits, job protection, and the nature of educational investment

Bruno Decreuse and Pierre Granier

Labour Economics, 2013, vol. 23, issue C, 20-29

Abstract: This paper examines the impact of labor market institutions covering the risk of unemployment on the nature of educational investment. We offer a matching model of unemployment in which individuals of a given education determine the scope (or adaptability) and intensity (or productivity) of their human capital before entering the labor market. Our model features an increasing relationship between match surplus and the return to adaptability skills. This relationship explains why matching frictions promote adaptability skills instead of productivity skills, and why unemployment benefits and job protection create the incentive for productivity skill acquisition.

Keywords: Matching frictions; Education; Adaptability skills; Labor market institutions (search for similar items in EconPapers)
JEL-codes: I21 J24 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0927537113000286
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Unemployment benefits, job protection, and the nature of educational investment (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:labeco:v:23:y:2013:i:c:p:20-29

DOI: 10.1016/j.labeco.2013.03.001

Access Statistics for this article

Labour Economics is currently edited by A. Ichino

More articles in Labour Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().