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Does Unemployment Insurance Displace Familial Assistance?

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  • Schoeni, Robert F

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. Copyright 2002 by Kluwer Academic Publishers

Suggested Citation

  • Schoeni, Robert F, 2002. "Does Unemployment Insurance Displace Familial Assistance?," Public Choice, Springer, vol. 110(1-2), pages 99-119, January.
  • Handle: RePEc:kap:pubcho:v:110:y:2002:i:1-2:p:99-119
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    Cited by:

    1. Jeffrey R. Brown & Amy Finkelstein, 2008. "The Interaction of Public and Private Insurance: Medicaid and the Long-Term Care Insurance Market," American Economic Review, American Economic Association, vol. 98(3), pages 1083-1102, June.
    2. Aldieri, Luigi & Fiorillo, Damiano, 2015. "Private monetary transfers and altruism: An empirical investigation on Italian families," Economic Analysis and Policy, Elsevier, vol. 46(C), pages 1-15.
    3. Raj Chetty & Emmanuel Saez, 2010. "Optimal Taxation and Social Insurance with Endogenous Private Insurance," NBER Chapters,in: Income Taxation, Trans-Atlantic Public Economics Seminar (TAPES), pages 85-114 National Bureau of Economic Research, Inc.
    4. Kristopher Gerardi & Yuping Tsai, 2014. "The Effect of Social Entitlement Programmes on Private Transfers: New Evidence of Crowding Out," Economica, London School of Economics and Political Science, vol. 81(324), pages 721-746, October.
    5. Milan Vodopivec, 2004. "Income Support for the Unemployed : Issues and Options," World Bank Publications, The World Bank, number 14922.
    6. 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.
    7. 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.
    8. Christine Ho, 2015. "Grandchild care, intergenerational transfers, and grandparents’ labor supply," Review of Economics of the Household, Springer, vol. 13(2), pages 359-384, June.
    9. Małgorzata Mikucka & Ester Rizzi, 2016. "Does it take a village to raise a child?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 34(34), pages 943-994, June.
    10. Albertini,Marco, 2016. "Ageing and family solidarity in Europe : patterns and driving factors of intergenerational support," Policy Research Working Paper Series 7678, The World Bank.
    11. 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.
    12. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, "undated". "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.
    13. Christine Ho, 2014. "Welfare-to-Work Reform and Intergenerational Support: Grandmothers’ Response to the 1996 PRWORA," Working Papers 12-2014, Singapore Management University, School of Economics.
    14. 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.
    15. Jonathan Pingle, 2005. "Welfare, Intergenerational Cohabitation Penalties, and Single Mothers’ Employment," Review of Economics of the Household, Springer, vol. 3(2), pages 123-144, June.
    16. Steven J. Haider & Kathleen McGarry, 2005. "Recent Trends in Resource Sharing Among the Poor," NBER Working Papers 11612, National Bureau of Economic Research, Inc.
    17. 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.
    18. Lin, Wanchuan & Liu, Yiming & Meng, Juanjuan, 2014. "The crowding-out effect of formal insurance on informal risk sharing: An experimental study," Games and Economic Behavior, Elsevier, vol. 86(C), pages 184-211.

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