Working Paper: CEPR ID: DP16591
Authors: Hans Fehr; Fabian Kindermann
Abstract: Besides love and affection the family also provides economic benefits. Beyond gains from specialization and economies of scale, it serves as a provider of insurance against various risks individuals face throughout their life. This insurance role of the family has changed during past decades owing to several factors: a fundamental transition in the gender wage gap and female labor force participation, the legal framework, and the dynamics of household formation over the life cycle. The present chapter reviews recent studies that quantify the importance of family insurance and studies its interplay with social insurance as well as the private insurance market.
Keywords: family insurance; household decision making; added worker effect
JEL Codes: D10; D15; D19; J22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Public Unemployment Benefits (J65) | Family Insurance Arrangements (G52) |
| Family Dynamics (J12) | Macroeconomic Outcomes (E19) |
| Unemployment (J64) | Spousal Labor Supply (J22) |
| Family Insurance Mechanisms (G52) | Mitigation of Economic Shocks (F41) |
| Spousal Labor Supply (J22) | Consumption Insured Against Permanent Wage Shocks (G52) |