Does the Welfare State Destroy the Family?
AbstractWe analyze the relationship between the family and the Welfare State when intra-family transfers are governed by risk-sharing considerations (i.e. not by altruism). For the benchmarl case, the classic neutrality result is obtained: more generous unemployment benefits, provided by the State, crowd out family risk-sharing arrangements one-for-one. The model is extended to capture the idea that families have an advantage at monitoring the search activities of the unemployed, whereas the State has an advantage at enforcing risk-sharing contracts through taxation.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 99195.
Length: 37 pages
Date of creation: 1997
Date of revision:
FAMILY ; SOCIAL WELFARE;
Find related papers by JEL classification:
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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- Rafael Di Tella & Robert MacCulloch, 2002.
"Informal Family Insurance And The Design Of The Welfare State,"
Royal Economic Society, vol. 112(481), pages 481-503, July.
- Rafael Di Tella & Robert MacCulloch, 1998. "Informal Family Insurance and the Design of the Welfare State," JCPR Working Papers 44, Northwestern University/University of Chicago Joint Center for Poverty Research.
- DiTella, Rafael & MacCulloch, Robert, 1999. "Informal family insurance and the design of the welfare state," ZEI Working Papers B 23-1999, ZEI - Center for European Integration Studies, University of Bonn.
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