VERY PRELIMINARY DRAFT, LOTS OF MISSING PIECES

In this paper, we attempt to summarize the various policy parameters of an unemployment insurance scheme into a single generosity parameter. In-deed, unemployment insurance [UI] is typically defined by waiting periods, eligibility duration and benefit levels when eligible, which makes intertem-poral or international comparisons difficult. We build a model with such complex characteristics. Our model features heterogeneous agents that are liquidity contrained but can self-insure, as well as moral hazard. We also build a second model that is similar, except that UI has no waiting period and agents are eligible forever. We then determine which level of benefit