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Should the Specificity of Human Capital Affect Unemployment Insurance Generosity?

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  • Ophélie Cerdan

Abstract

This article examines the argument whereby the more specific the human capital of the workforce is, the less such individuals can expect to receive in benefits if and when they experience unemployment. We present a theoretical model for understanding how the composition of human capital determines the level of unemployment benefits. This model shows that, depending on the scenario chosen for the management of the insurance fund, the proportion of individuals with specific human capital can lead to the replacement rate of optimal unemployment compensation rising or falling.

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  • Ophélie Cerdan, 2013. "Should the Specificity of Human Capital Affect Unemployment Insurance Generosity?," Annals of Economics and Statistics, GENES, issue 109-110, pages 235-257.
  • Handle: RePEc:adr:anecst:y:2013:i:109-110:p:235-257
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