We study the problem of unemployment benefit provision when the family is also a provider of social insurance. As a benchmark, a simple model is presented where risk-sharing motives govern intra-family transfers and more generous unemployment benefits, provided by the State, crowd out family...

Social capital, Social trust, Crowding-out hypothesis, Welfare state, Social spending. - The crowding-out hypothesis asserts that the state development tends to erode social capital, that is voluntary, familial, communal and other interpersonal ties become weaker; people lose the sense of moral...

We study the problem of unemployment benefit provision when the family is also a provider of social insurance. As a benchmark, a simple model is presented where risksharing motives govern intra-family transfers and more generous unemployment benefits, provided by the State, crowd out family...