Does Unemployment Insurance Displace Familial Assistance?

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.