Recent studies estimate that eligibility for unemployment insurance program raises layoff probability by 12 per cent in Brazil. This paper develops a partial equilibrium model where workers search for jobs and might quit them in order to collect UI benefits. We calibrate it using data from Brazil and use it to assess the consequences of this behavior on firmspecific human capital accumulation and labor productivity in the economy. Through counterfactual exercises, we find that a stricter job tenure eligibility threshold would raise the average wage, the job tenure, but also the turnover rate. We discuss this last result and conclude that it depends on how the policy modifies the fraction of employed workers who voluntarily separate from their jobs. In another exercise, we find a negative relationship between the change in the UI replacement rate and the average employment duration.