THE INTERACTION BETWEEN UNEMPLOYMENT INSURANCE AND HUMAN CAPITAL POLICIES

Carlos Eugênio da Costa () and Lucas Maestri

Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33rd Brazilian Economics Meeting] from ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics]

Abstract: In the presence of an optimally designed unemployment bene.t system we show that it is optimal for the government to encourage human capital acquisition. The driving force of this result is the complementarity between human capital and labor-market- oriented behavior. If policy includes inter-temporal transfers, the optimal level of investment in human capital is given at the point where, at the margin, expected return to human capital is identical to the risk free rate even though there is no full insurance at the optimum.

JEL-codes: I28 J65 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-hrm, nep-ias and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: The interaction between unemployment insurance and human capital policies (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:anp:en2005:089

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