Michelacci, Claudio; Ruffo, Hernán - C.E.P.R. Discussion Papers - 2014
We argue that US welfare would rise if unemployment insurance were increased for younger and decreased for older … workers. This is because the young tend to lack the means to smooth consumption during unemployment and want jobs to … accumulate high-return human capital. So unemployment insurance is most valuable to them, while moral hazard is mild. By …