Discussion paper

DP16591 The Insurance Role of the Family

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.


Fehr, H and F Kindermann (2021), ‘DP16591 The Insurance Role of the Family‘, CEPR Discussion Paper No. 16591. CEPR Press, Paris & London. https://cepr.org/publications/dp16591