Jobs specialization versus unemployment: more on the productivity effect of unemployment benefits |
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| Authors: | Samir Amine Frédéric Gavrel Isabelle Lebon |
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| Institution: | (1) Department of Economics, CERENE, University of Le Havre, 25 rue Philippe Lebon, BP 420, 76057 Le Havre Cedex, France |
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| Abstract: | We use the Marimon and Zilibotti (Econ J 109: 266–291, 1999) circle model and we endogenize the choice of the degree of specialization
of jobs. We show that an increase in unemployment benefits not only reduces the mismatch of talents (as in Marimon and Zilibotti),
but it also raises the degree of specialization of jobs. This reinforces the productivity enhancing effects of unemployment
benefits.
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| Keywords: | Matching Job choosiness Unemployment benefits Differentiation of skills Jobs specialization |
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