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Does Unemployment Insurance Displace Familiar Assistance?

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  • Robert F. Schoeni

Abstract

The objective of this study is to examine the extent to which benefits received from the Unemployment Insurance Program displace assistance that the unemployed receive from their extended family. Using data from a supplement to the Panel Study of Income Dynamics, it is found that the unemployed receive private support and that these private networks are fairly pervasive; twenty-nine percent of those receiving Unemployment Insurance benefits also receive cash transfers from their family or friends. Moreover, it is found that unemployment benefits displace familial support by as much as 24-40 cents per dollar.

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File URL: http://www.rand.org/content/dam/rand/pubs/drafts/2008/DRU2289.pdf
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Bibliographic Info

Paper provided by RAND Corporation Publications Department in its series Working Papers with number 00-05.

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Length: 31 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:ran:wpaper:00-05

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Keywords: UNEMPLOYMENT INSURANCE ; INCOME ; FAMILY;

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References

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  1. Roberts, Russell D, 1984. "A Positive Model of Private Charity and Public Transfers," Journal of Political Economy, University of Chicago Press, vol. 92(1), pages 136-48, February.
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  6. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
  7. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June.
  8. B. Douglas Bernheim & Kyle Bagwell, 1989. "Is Everything Neutral?," NBER Working Papers 2086, National Bureau of Economic Research, Inc.
  9. Bergstrom, Theodore C, 1989. "A Fresh Look at the Rotten Kid Theorem--and Other Household Mysteries," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1138-59, October.
  10. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S151-82, July.
  11. Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
  12. Wilhelm, M.O., 1990. "Bequest Behavior And The Effect Of Heirs' Earnings: Testing The Altruistic Model Of Bequests," Papers 9-90-12, Pennsylvania State - Department of Economics.
  13. Kingma, Bruce Robert, 1989. "An Accurate Measurement of the Crowd-Out Effect, Income Effect, and Price Effect for Charitable Contributions," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1197-1207, October.
  14. Brennan, Geoffrey & Pincus, Jonathan J, 1983. "Government Expenditure Growth and Resource Allocation: The Nebulous Connection," Oxford Economic Papers, Oxford University Press, vol. 35(3), pages 351-65, November.
  15. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May.
  16. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December.
  17. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
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Citations

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Cited by:
  1. Luigi Aldieri & Damiano Fiorillo, 2012. "Private monetary transfers and altruism: An empirical investigation on Italian families," Discussion Papers 12_2012, CRISEI, University of Naples "Parthenope", Italy.
  2. Christine Ho, 2013. "Grandchild Care, Intergenerational Transfers, and Grandparents’ Labor Supply," Working Papers 06-2013, Singapore Management University, School of Economics.
  3. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "The Effects of Income and Wealth on Time and MOney Transfers Between Parents and Children," IPR working papers 96-5, Institute for Policy Resarch at Northwestern University.
  4. Raj Chetty & Emmanuel Saez, 2008. "Optimal Taxation and Social Insurance with Endogenous Private Insurance," NBER Working Papers 14403, National Bureau of Economic Research, Inc.
  5. Steven J. Haider & Kathleen McGarry, 2005. "Recent Trends in Resource Sharing Among the Poor," NBER Working Papers 11612, National Bureau of Economic Research, Inc.
  6. Jonathan Pingle, 2005. "Welfare, Intergenerational Cohabitation Penalties, and Single Mothers’ Employment," Review of Economics of the Household, Springer, vol. 3(2), pages 123-144, 06.
  7. Wolff, François-Charles, 2006. "Les transferts ascendants au Bangladesh, une décision familiale?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 271-316, mars-juin.
  8. Małgorzata Mikucka, 2014. "Does Individualistic Culture Lower the Well-Being of the Unemployed? Evidence from Europe," Journal of Happiness Studies, Springer, vol. 15(3), pages 673-691, June.
  9. Jeffrey R. Brown & Amy Finkelstein, 2004. "The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market," NBER Working Papers 10989, National Bureau of Economic Research, Inc.
  10. Hans Fehr, 2009. "Computable Stochastic Equilibrium Models and Their Use in Pension- and Ageing Research," De Economist, Springer, vol. 157(4), pages 359-416, December.
  11. François-Charles Wolff & Seymour Spilerman & Claudine Attias-Donfut, 2007. "Transfers From Migrants To Their Children: Evidence That Altruism And Cultural Factors Matter," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 53(4), pages 619-644, December.
  12. Lai, Mun Sim & Orsuwan, Meechai, 2009. "Examining the Impact of Taiwan's Cash Allowance Program on Private Households," World Development, Elsevier, vol. 37(7), pages 1250-1260, July.

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