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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: J65 I28 (search for similar items in EconPapers)
Date: 2005
New Economics Papers: this item is included in nep-hrm, nep-ias and nep-sea
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http://www.anpec.org.br/encontro2005/artigos/A05A089.pdf

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

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