Human Capital Accumulation and the Optimal Level of Unemployment Insurance Provision
AbstractPrevious studies of optimal unemployment insurance design ignore the impact of unemployment insurance on human capital investment decisions. The authors show that fully experience-rated unemployment insurance increases investment in human capital when future employment opportunities are not known with certainty. In the presence of wage taxation, the optimal level of unemployment insurance trades off full insurance and the impact, through human capital, of unemployment insurance on the wage tax base. This trade-off, in turn, depends on the extent to which human capital accumulation reallocates labor between market and untaxed nonmarket activities. Taxation of unemployment insurance benefits increases the optimal level of unemployment insurance provision. Copyright 1988 by University of Chicago Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 6 (1988)
Issue (Month): 4 (October)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JOLE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Carlos E. da Costa & Lucas Maestri, 2005.
"The Interaction Between Unemployment Insurance And Human Capital Policies,"
Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting]
089, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Costa, Carlos Eugênio da & Maestri, Lucas Jóver, 2005. "The Interaction Between Unemployment Insurance and Human Capital Policies," Economics Working Papers (Ensaios Economicos da EPGE) 595, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
- Jonathan Gruber, 1994. "The Consumption Smoothing Benefits of Unemployment Insurance," NBER Working Papers 4750, National Bureau of Economic Research, Inc.
- Carsten Helm & Dominique Demougin, 2012. "Incentive Contracts and Efficient Unemployment Benefits in a Globalized World," Working Papers V-348-12, University of Oldenburg, Department of Economics, revised Aug 2012.
- Brent Kreider, 2008.
"Optimal Wage Taxation When Human Capital And Employment Are Endogenous,"
Western Economic Association International, vol. 46(4), pages 660-675, October.
- Kreider, Brent, 2008. "Optimal Wage Taxation When Human Capital and Employment Are Endogenous," Staff General Research Papers 12358, Iowa State University, Department of Economics.
- Chetty, Raj, 2006.
"A general formula for the optimal level of social insurance,"
Journal of Public Economics,
Elsevier, vol. 90(10-11), pages 1879-1901, November.
- Raj Chetty, 2005. "A General Formula for the Optimal Level of Social Insurance," NBER Working Papers 11386, National Bureau of Economic Research, Inc.
- repec:old:wpaper:348 is not listed on IDEAS
- FLam, Sjur Didrik & Risa, Alf Erling, 1995. "Market Insurance, Social Insurance, and Education," Journal of Population Economics, Springer, vol. 8(2), pages 149-60, May.
- Castro-Fernandez, Rodriguo & Wodon, Quentin, 2002. "Protecting the Unemployed in Chile: From State Assistance to Individual Insurance?," MPRA Paper 15416, University Library of Munich, Germany.
- Brit S. Schneider & Udo Schneider & Volker Ulrich, 2007. "Health and the Decision to Invest in Education," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 227(5+6), pages 725-745, December.
- World Bank, 2001. "Poverty and Income Distribution in a High Growth Economy : The Case of Chile 1987-98, Volume 2. Background Papers," World Bank Other Operational Studies 15469, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.