Association for Public Policy Analysis & Management

Workers experiencing an unemployment spell may rely on financial assistance from family members to help smooth consumption. The effect on family members from providing assistance may occur in both the short-term cost of provision, if they do provide help, and long-term altered behavior, if they perceive additional risk and costs in the future and adjust accordingly. In this paper, we explore the effect of an adult child's unemployment spell on an array of parental outcomes. Using the Panel Study of Income Dynamics from 1968-2013, we are able to observe parents in the year of the child’s spell, as well as the years following, and study labor force participation, savings and retirement planning, consumption, and health.