The Insurance Role of the Family
37 Pages Posted: 9 Nov 2021
Date Written: September 2021
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: Added Worker Effect, family insurance, Household decision making
JEL Classification: D10, D15, D19, J22
Suggested Citation: Suggested Citation