Table 1
Share of observed family transfers concurrent with life events, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| Share of transfers | Conditional transfer size in $2013 | |
|---|---|---|
| Exiting college | 0.057 (0.231) | $4,015 ($7,749) |
| Getting married | 0.038 (0.191) | $2,796 ($5,858) |
| Becoming separated | 0.056 (0.229) | $2,565 ($4,775) |
| Buying a house | 0.047 (0.211) | $5,795 ($12,708) |
| Having a child | 0.054 (0.226) | $3,094 ($7,769) |
| Unemployed | 0.236 (0.425) | $2,060 ($4,158) |
| None of the above | 0.599 (0.490) | $3,034 ($6,479) |
[i] Notes: Data are from the 1976–2013 waves of the PSID. The sample includes 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Other events are based on status changes from the previous year. Table shows mean values and standard deviations (in parentheses) of transfer receipt in the year of concurrent unemployment or year of status change.
Table 2
Replacement rate and receipt of unemployment insurance benefits and family cash transfers among unemployed workers, heads of household and spouses aged 19-59 years, 1976-2013 PSID
| Replacement rate | Share reporting receipt | ||||||
|---|---|---|---|---|---|---|---|
| Potential weekly UI benefit | Reported 6-month UI benefit | Reported 6-month transfer | UI benefits | Family cash transfer | Both UI and family | Neither UI nor family | |
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | |
| All | 0.432 | 0.277 | 0.411 | 0.286 | 0.153 | 0.029 | 0.533 |
| Age, years | |||||||
| 29 | 0.442 | 0.288 | 0.379 | 0.216 | 0.209 | 0.030 | 0.544 |
| 39 | 0.430 | 0.258 | 0.413 | 0.326 | 0.129 | 0.032 | 0.514 |
| 49 | 0.421 | 0.265 | 0.471 | 0.339 | 0.097 | 0.025 | 0.538 |
| 59 | 0.423 | 0.319 | 0.568 | 0.376 | 0.075 | 0.019 | 0.531 |
| Race | |||||||
| Black | 0.428 | 0.276 | 0.303 | 0.237 | 0.162 | 0.027 | 0.574 |
| White | 0.435 | 0.270 | 0.511 | 0.336 | 0.149 | 0.032 | 0.483 |
| Gender | |||||||
| Male | 0.429 | 0.261 | 0.293 | 0.361 | 0.149 | 0.032 | 0.459 |
| Female | 0.436 | 0.307 | 0.545 | 0.205 | 0.157 | 0.025 | 0.613 |
| Family | |||||||
| Married | 0.433 | 0.276 | 0.412 | 0.310 | 0.109 | 0.024 | 0.557 |
| Divorced | 0.430 | 0.259 | 0.378 | 0.293 | 0.187 | 0.041 | 0.479 |
| Never married | 0.432 | 0.304 | 0.432 | 0.213 | 0.253 | 0.034 | 0.499 |
| Education | |||||||
| LTHS | 0.437 | 0.293 | 0.354 | 0.264 | 0.120 | 0.015 | 0.601 |
| HS | 0.440 | 0.285 | 0.334 | 0.298 | 0.139 | 0.027 | 0.536 |
| Some college | 0.433 | 0.268 | 0.439 | 0.299 | 0.171 | 0.037 | 0.492 |
| BA or higher | 0.408 | 0.248 | 0.555 | 0.258 | 0.196 | 0.036 | 0.510 |
| White HS | 0.445 | 0.272 | 0.358 | 0.377 | 0.124 | 0.031 | 0.467 |
| Black HS | 0.433 | 0.291 | 0.303 | 0.230 | 0.157 | 0.023 | 0.590 |
| White BA | 0.402 | 0.255 | 0.650 | 0.261 | 0.199 | 0.033 | 0.508 |
| Black BA | 0.419 | 0.218 | 0.187 | 0.255 | 0.194 | 0.043 | 0.508 |
[i] Notes: Data are from the 1976-2013 waves of the PSID. Sample contains 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Replacement rates in Column 1 are calculated based on earnings in the year preceding unemployment and the state and year of unemployment. Replacement rates in Columns 2 and 3 are based on earnings in the year preceding unemployment and the reported transfer income (from UI or family) in the year of unemployment.
LTHS, Less than high school; HS, high school; BA, bachelor’s degree or higher.
Figure 1
Share of unemployed individuals receiving a transfer from family (top) and unemployment insurance (bottom), heads of household and spouses aged 19–59 years, 1976–2013 PSID.
Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year.
Table 3
Coefficient estimates from regression of family transfer receipt on unemployment spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| Binary transfer receipt | Real transfer amount (in $2013) | |||
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Unemployment (U) | 0.039*** (0.002) | 70.921*** (12.284) | ||
| U displaced | 0.037*** (0.004) | 49.332** (16.624) | ||
| U voluntary | 0.047*** (0.004) | 66.902*** (20.292) | ||
| U not specified | 0.034*** (0.003) | 81.649*** (17.184) | ||
| Becomes homeowner | 0.006* (0.003) | 0.006* (0.003) | 219.624*** (35.85) | 219.577*** (35.848) |
| Gets married | 0.017*** (0.005) | 0.017*** (0.005) | 5.077 (39.528) | 5.084 (39.535) |
| Gets divorced | 0.004 (0.005) | 0.004 (0.005) | 27.743 (31.09) | 27.701 (31.089) |
| (separated) | ||||
| Becomes a parent | 0.004 (0.003) | 0.004 (0.003) | -11.928 (28.081) | -11.911 (28.078) |
| Leaves school | 0.071*** (0.006) | 0.071*** (0.006) | 394.865*** (56.53) | 394.850*** (56.543) |
| Becomes disabled | -0.01 (0.007) | -0.01 (0.007) | -4.644 (32.211) | -5.056 (32.207) |
| Homeowner | -0.016*** (0.002) | -0.016*** (0.002) | 1.389 (14.459) | 1.3 (14.463) |
| Married | -0.061*** (0.004) | -0.061*** (0.004) | -83.636** (25.677) | -83.729** (25.67) |
| Divorced/separated | -0.013* (0.005) | -0.013* (0.005) | 16.409 (31.815) | 16.352 (31.813) |
| Has children | 0.009*** (0.002) | 0.009*** (0.002) | 59.668*** (17.249) | 59.755*** (17.247) |
| Student | 0.050*** (0.007) | 0.049*** (0.007) | 234.176*** (57.261) | 234.371*** (57.218) |
| Disabled HH member | 0.027*** (0.004) | 0.027*** (0.004) | 53.140** (18.225) | 52.949** (18.221) |
| State UR | 0.002** (0.001) | 0.002** (0.001) | 9.492** (3.445) | 9.553** (3.443) |
| Age | -0.012*** (0.001) | -0.012*** (0.001) | -34.083*** (4.792) | -34.217*** (4.794) |
| Other Xit | Y | Y | Y | Y |
| Individual and year fixed effects | Y | Y | Y | Y |
| Mean of dependent variable | 8.0% | 8.0% | $242.99 | $242.99 |
| N | 278,794 | 278,794 | 278,794 | 278,794 |
[i] Notes: Data are from the 1976–2013 waves of the PSID. The sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Table shows coefficient estimates and standard errors in parentheses for four regressions. Covariates included but not shown are age squared; dummies indicating whether the individual has a deceased parent, a working parent, or lives in the same state as a parent; as well as the individual fixed effects and year fixed effects. Standard errors are clustered at the household level HH, household; UR, unemployment rate.
*1%, **5%, ***10% level.
Figure 2
Coefficients from regression of family transfers on years since unemployment, heads of household and spouses aged 19–59 years, 1976–2013 PSID.
Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Figure shows coefficient estimates of regression of family transfer on time since unemployment; regressions include covariates, individual fixed effects, and year fixed effects.
Figure 3
Coefficients from regression of family transfers on time since unemployment, spell due to displacement (top) and voluntary spell (bottom), heads of household and spouses aged 19–59 years, 1976–2013 PSID.
Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. The regressions of family transfer on time since unemployment include covariates, individual fixed effects, and year fixed effects.
Table 4
Coefficient estimate of regression of family transfer receipt on unemployment, by demographic subgroup, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| Group | γ Estimate | Mean | Percentage increase | Group | γ Estimate | Mean | Percentage increase |
|---|---|---|---|---|---|---|---|
| Aged 19–29 years | 0.044*** | 0.14 | 31% | Married | 0.027*** | 0.053 | 51% |
| SE | 0.004 | SE | 0.002 | ||||
| Aged 30–39 years | 0.034*** | 0.068 | 50% | Divorced | 0.050*** | 0.108 | 46% |
| SE | 0.004 | SE | 0.008 | ||||
| Aged 40–49 years | 0.023*** | 0.049 | 47% | Never married | 0.054*** | 0.178 | 30% |
| SE | 0.004 | SE | 0.006 | ||||
| Aged 50–59 years | 0.015** | 0.039 | 38% | Less than HS | 0.022*** | 0.072 | 31% |
| SE | 0.005 | SE | 0.005 | ||||
| Male | 0.043*** | 0.076 | 57% | HS degree | 0.036*** | 0.071 | 51% |
| SE | 0.003 | SE | 0.003 | ||||
| Female | 0.035*** | 0.083 | 42% | Some college | 0.039*** | 0.089 | 44% |
| SE | 0.003 | SE | 0.004 | ||||
| Black | 0.037*** | 0.093 | 40% | BA or higher | 0.061*** | 0.086 | 71% |
| SE | 0.004 | SE | 0.006 | ||||
| White | 0.041*** | 0.073 | 56% | ||||
| SE | 0.003 |
[i] Notes: Data are from the 1976–2013 waves of the PSID. Sample includes 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Table shows coefficient estimates and standard errors (SEs) of 15 panel regressions. Covariates included when appropriate but not shown are marital status; disability status; home ownership; presence of children in the household; state unemployment rate; age; age squared; dummies for whether a parent is dead, working, or living in the same state; and individual and year fixed effects. Standard errors are clustered at the household level.
*1%, **5%, ***10% level.
Table 5
Coefficient estimate of regression of family transfer receipt on unemployment, by length of spell, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| All spells | Displaced | Voluntary | Not specified | |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Tit = Dummy | ||||
| Short spell | 0.027*** | 0.022** | 0.049*** | 0.015** |
| SE | 0.004 | 0.008 | 0.009 | 0.005 |
| Medium spell | 0.035*** | 0.032*** | 0.045*** | 0.029*** |
| SE | 0.003 | 0.004 | 0.005 | 0.003 |
| Long spell | 0.061*** | 0.059*** | 0.052*** | 0.065*** |
| SE | 0.004 | 0.007 | 0.01 | 0.006 |
| Tit = Amount | ||||
| Short spell | 44.339 | -19.442 | 82.353 | 48.26 |
| SE | 24.406 | 31.863 | 50.449 | 34.488 |
| Medium spell | 61.758*** | 35.02 | 54.571* | 78.637*** |
| SE | 14.87 | 20.28 | 23.203 | 22.913 |
| Long spell | 118.278*** | 118.122*** | 91.879* | 122.748*** |
| SE | 19.319 | 28.926 | 41.3 | 26.474 |
[i] Notes: Data are from the 1976–2013 waves of the PSID. Sample contains 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Table shows coefficient estimates and standard errors (SEs) of four panel regressions. Covariates included but not shown are marital status; disability status; home ownership; presence of children in the household; state unemployment rate; age; age squared; dummies for whether a parent is dead, working, or living in the same state; and individual and year fixed effects. Standard errors are clustered at the household level.
*1%, **5%, ***10% level.
Table 6
Coefficient estimate of regression of family transfer receipt on unemployment, by variable construction, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| Binary transfer receipt | Real transfer amount (in $2013) | |||||
|---|---|---|---|---|---|---|
| Own | Head | Spouse | Own | Head | Spouse | |
| (1) | (2) | (3) | (4) | (5) | (6) | |
| Unemployment | 0.036*** | 0.044*** | 0.006 | 67.603*** | 64.481*** | 1.456 |
| SE | 0.002 | 0.003 | 0.002 | 9.979 | 11.479 | 2.955 |
| Other Xit | Y | Y | Y | Y | Y | Y |
| Individual and Year fixed effects | Y | Y | Y | Y | Y | Y |
| Mean of dependent variable | 6.0% | 7.3% | 0.9% | $162.60 | $209.62 | $33.38 |
| N | 278,794 | 173,125 | 105,669 | 278,794 | 173,125 | 105,669 |
[i] Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Table shows coefficient estimates and standard errors (SEs) of six panel regressions. The samples vary by construction of the dependent variable (transfer to self versus transfer to household) and then receiver/unemployed worker. Covariates included but not shown are marital status; disability status; home ownership; presence of children in the household; state unemployment rate; age; age squared; dummies for whether a parent is dead, working, or living in the same state; and individual and year fixed effects. Standard errors are clustered at the household level.
*1%, **5%, ***10% level.
Table 7
Coefficient estimates of regressions of family transfer receipt on unemployment insurance receipt, actual and instrumented, heads of household and spouses aged 19–59 years, 1976–2013 PSID
| Observed | IV | IV | IV | |
|---|---|---|---|---|
| All years | All years | 1976–1995 | 1996–2013 | |
| (1) | (2) | (3) | (4) | |
| Unemployment | 0.047*** | 0.046*** | 0.035*** | 0.057** |
| SE | 0.003 | 0.01 | 0.007 | 0.018 |
| U*UI | -0.026*** | -0.022 | -0.013 | -0.042 |
| SE | 0.004 | 0.028 | 0.021 | 0.050 |
| Xit | Y | Y | Y | Y |
| Individual fixed effects | Y | Y | Y | Y |
| State × Year fixed effects | Y | Y | Y | Y |
| Wage spline | Y | Y | Y | Y |
| N | 225,298 | 225,298 | 104,434 | 120,864 |
| Unemployment | 81.996*** | 126.348 | 104.796* | 268.452 |
| SE | 16.88 | 81.71 | 42.05 | 171.039 |
| U*UI | -44.413 | -172.286 | -199.33 | -504.385 |
| SE | 23.553 | 233.246 | 120.452 | 480.321 |
| Xit | Y | Y | Y | Y |
| Individual fixed effects | Y | Y | Y | Y |
| State × Year fixed effects | Y | Y | Y | Y |
| Wage spline | Y | Y | Y | Y |
| N | 225,298 | 225,298 | 104,434 | 120,864 |
[i] Notes: Data are from the 1976–2013 waves of the PSID. Sample comprises 19- to 59-year-old adults who are either head of household or spouse. Family transfers are 1-year household totals (transfer reported by head, spouse, or both). A worker is unemployed if he/she reports at least 1 week of unemployment in a year. Table shows coefficient estimates and standard errors (SEs) of eight regressions. Covariates included but not shown are marital status; disability status; home ownership; presence of children in the household; state unemployment rate; age; age squared; dummies for whether a parent is dead, working, or living in the same state; and individual and year fixed effects. Standard errors are clustered at the household level.
*1%, **5%, ***10% level.