Does Unemployment Insurance Displace Familial Assistance?

The objective of this study is to examine the extent to whichbenefits received from the Unemployment Insurance Programdisplace assistance that the unemployed receive from theirextended family. Using data from a supplement to the PanelStudy of Income Dynamics, it is found that the unemployedreceive private support and that these private networks arefairly pervasive; twenty-nine percent of those receivingUnemployment Insurance benefits also receive cash transfersfrom their family or friends. Moreover, it is found thatunemployment benefits displace familial support by as much as24–40 cents per dollar.