Upstream Intergenerational Transfers

This study analyzes upstream intergenerational transfers from middle-aged children to their elderly parents. We formulate a model in which the middle-aged child transfers both money and time to an elderly parent based on an altruistic motive. We examine substitution between financial transfers and time transfers using data from the Health and Retirement Study (HRS). Empirical results support the assumption that upstream transfers are motivated by altruism, particularly financial transfers. Parents financially worse off than their middle-aged children receive more money. They are more likely to live nearby if not coresident. Overall, the results for time transfers provide weaker support for our model than financial transfers. A child with a high wage tends to transfer money rather than time, suggesting that the two types of transfers are partial substitutes.     

Is It True Love? Altruism Versus Exchange in Time and Money Transfers

This paper investigates what motivates intergenerational inter-vivos time and money transfers. We consider a model in which transfers may be driven not only by altruism, but also by exchange considerations. We use data from the Survey of Health, Ageing and Retirement in Europe to discriminate between the two motives. We show that both if we consider money transfers from parents to children and time transfers from children to parents, the empirical evidence rejects pure altruism in favor of exchange. This result has important policy implications on the effectiveness of formal care provision as a substitute for informal care and on the impact of taxation on transfers.     

Delaying Inter Vivos Transmissions Under Asymmetric Information

This paper develops a model of bequeathing based on a moral hazard type of argument. This model explains why altruistic parents prefer late bequests to early inter-vivos gifts; it also analyzes whether or not they ought to leave rather equal bequests to their children even when the children end up with quite different incomes.     

父母对子女的私人转移支付与子女劳动力供给

利用中国家庭金融调查（CHFS）2013年数据,本文考察了来自父母的私人转移支付对子女劳动力供给的影响。采用父亲和母亲的受教育年限作为私人转移支付的工具变量克服了计量模型可能存在的内生性问题。研究发现,父母对子女的私人转移支付每提高1%,子女的日、周、年劳动力供给将分别降低0.0254%、0.0536%、0.0991%,据此测算,父母对子女的私人转移支付每增加1元将使全国劳动力日劳动供给减少约5.24万小时。进一步的影响机制分析发现,父母通过私人转移支付"购买"子女提供的关爱、照料服务而挤出了子女的劳动力供给是导致上述结果的重要原因。研究还发现,来自父母的私人转移支付对子女劳动力供给的影响只存在集约边际,而不存在广延边际,即其仅减少了子女的劳动供给时间,而并没有使子女退出劳动力市场。本文的研究有助于理解自上而下的代际转移支付带来的经济影响。     

Asset or burden? Impact of children on parents’ retirement

If parents receive financial support in retirement from their children, having more children with higher earning power may expedite their retirement. On the other hand, retirement may be delayed if parents are burdened with educational expenses for children. We empirically investigate how the quantity and the education of children influence their parents’ retirement decisions. Due to the endogeneity of childrearing in the retirement decision, we employ the instrumental variable method with twin births and child deaths as instruments. We find that parents retire earlier when they have more children and better educated children and they receive a significant amount of transfers from children.     

Sibling donation games: pure-altruism,strategic-altruism,and the interaction of familial and public transfers

Accompanying the rapidly aging populations of high-income countries are increasing transfers of time and money from adult children to elderly parents (ascending altruism). In this paper we first develop a theoretical model to characterize the general reaction-functions of two adult siblings choosing transfer amounts (possibly time) to their needy parents under two alternative motivations: pure altruism and strategic altruism. We show that transfers are strategic substitutes under pure altruism and strategic complements under strategic altruism. The Nash-equilibrium generates distinct predictions associated with each motivation and we then explore some implications of our findings. A result with potentially important policy implications is that the response of children transfers to increased pension payments to the parents depends on the children's motivations. This contrasts with much of the literature which assumes transfers decrease with increased pension payments.     

The health of left-behind children in rural China

Child health is not only a key indicator of overall quality of public health, but also vital for the future economic development of a country. In recent years, with unprecedented urbanization of China, many children in rural areas have been left behind while their parents migrate to urban areas to seek employment opportunities. Thus, it is considerably important for us to understand the effects of lack of parental care on the health status of left-behind children. Using data from China Health and Nutrition Survey (CHNS), we find that the left-behind children in rural areas are significantly 20.0% more likely to get sick or develop chronic conditions than those living with their parents. We also find that girls are more vulnerable than boys and younger children are more vulnerable than older children to lack of parental care.     

Is care by grandparents or parents better for children's non-cognitive skills? Evidence on locus of control from China

This study investigates the effect of grandparental involvement in childcare on children's locus of control (LOC), which is an important non-cognitive skill that affects children's future development. We use data from the China Family Panel Studies, which is a nationally representative survey, and employ instrumental variables to address the endogeneity of family childcare choice. We find that children with grandparental care have more external LOC than children in the sole care of their parents do; that is, they are more likely to attribute individual success to external factors, such as luck, fate, and family background. This finding is robust to different measures of grandparental involvement in childcare and different model specifications, as well as a minor violation of the exclusion restriction of the instruments. We further examine the potential mechanisms underlying this effect. Grandparents have more external LOC than parents do, which can affect children's LOC through intergenerational transmission of LOC. Their parenting attitudes and styles are also different from parents' in that grandparents take less responsibility for children's academic performance than parents do and are less strict with children. In addition, grandparental care induces adverse effects on children's family environment.     

Deprivation among children living and working on the streets of Harare

ABSTRACT

This article investigates the extent of deprivation and vulnerability among children who live and work on the streets of Harare. A questionnaire survey was administered to 100 children in Harare's central business district; this was supplemented by in-depth interviews and focus group discussions. The study found that these children suffered severe deprivation, in particular in terms of shelter and education. The majority of the children obtained their income from begging and selling small items. They were exposed to verbal, physical, sexual and emotional abuse by the public, as well as by other children and adults on the streets. Poverty was the main reason for the children being on the streets, while social factors such as family disintegration or the death of their parents also played a role. These push factors can be addressed through providing more social protection, cash transfers to families, and education and health assistance.     

留守儿童的公平感与幸福度:来自实地实验与调查的依据

文章利用实地实验与调查相结合的方法,研究父母双方均外出的留守儿童与非留守儿童在公平感和幸福度上的差异。根据儿童在独裁者游戏、最后通牒游戏和问卷调查中的结果,我们发现两类儿童对优势和弱势不公平的厌恶方面不存在显著差异,但留守儿童主观汇报的幸福度显著低于非留守儿童。机制探究显示父母陪伴缺失是导致留守儿童幸福度较低的原因。若将留守儿童的定义扩大至父母一方在外务工者,以上差异均消失,说明双留守儿童是我们更应关注的群体。文章研究对补充现有留守儿童行为研究以及相应公共政策均具有重要的启示意义。     

Long-Run Implications of Social Security Taxation for Growth and Fertility

This paper compares long-run implications for growth and fertility of four types of taxation for social security with positive bequests. A tax rise under lump-sum taxation enhances growth but lowers fertility, while other types of taxation do so under additional restrictions. A tax rise under consumption taxation is less likely to stimulate growth and to reduce fertility than under payroll taxation. A rise in an interest income tax raises fertility, reduces both savings and human capital investment, and hence is harmful for growth. The case with zero bequests is also discussed.     

Who cares for children? A quantitative study of childcare in South Africa

In this study we investigate the gender division of labour in the physical and financial care of children in South Africa, in the context of large race differences in rates of union formation and parent–child co-residence. Using national micro-data, we show that across a variety of household forms, women are the primary caregivers of children even when they are not a child’s biological mother. Women are also more likely to provide physical care than men are to provide financial support for children’s schooling. However, this gender imbalance is far larger in the case of African children, the majority of whom do not live with their father. For most African children, both their physical and financial care is provided by women who are typically the child’s biological mother, but also the child’s grandmother or another female relative.     

Strategic interaction between inter vivos gifts and housing acquisition

This paper models the interdependence of parental inter vivos gifts and children’s home purchases when informal care affects decision making. We use data from Japanese households who purchased a detached house in an urban area to test this strategic interaction. Considering both censoring and endogeneity of inter vivos gifts, which are identified by information on formal care, our preferred results demonstrate that inter vivos gifts do not significantly increase the purchase price of housing. Theory suggests that this occurs when informal care tends to be a heavy burden for children. However, subsample analysis of young home buyers indicates that the empirical results are consistent with the literature: children who receive parental gifts tend to purchase a higher-priced dwelling. One potential explanation is that relatively young adult children are less likely to take charge of care obligations, and accordingly, parental gifts are only expected to relax their liquidity constraints. Subsample analysis appears to indicate that the underlying motivation of parental gifts is influenced by the timing of children’s home purchase decisions.     

The impact of bequest motives on labor supply and retirement behavior in Japan: A theoretical and empirical analysis

Do individuals who want to leave a bequest work more and retire later than other individuals? Does the reason for wanting to leave a bequest (altruism vs. exchange) matter? In this paper, we conduct a theoretical and empirical analysis of the impact of bequest motives on the labor supply and retirement behavior of households in Japan, and to the best of our knowledge, it is virtually the first paper to do so. We conduct an empirical analysis using micro data from a unique survey—the Preference Parameters Study of Osaka University—and show that respondents with an altruistic or strategic/exchange bequest motive work more at the intensive margin than those without any bequest motive but that respondents with a strategic or exchange bequest motive work less at the extensive margin (i.e., retire earlier) than those without any bequest motive. Our findings for the strategic or exchange motive suggest that respondents with such a motive tend to work more than others before they retire so that they can earn more, leave a larger bequest to their children, and elicit more care from them but that they tend to retire earlier than others so that they can start receiving care for themselves and their spouses from their children sooner. Our findings have important policy implications because they imply that inheritance taxes may affect people's labor supply and retirement behavior by influencing the strength of their bequest motives and that these effects may differ by the type of bequest motive.     

How do private transfers respond to public transfers? Evolutionary evidence from Thailand

Private inter‐household transfers and public transfers can change along with changes in social and economic conditions. However, most previous studies have examined their relationship from static perspectives. This study contributes new evidence by investigating the dynamic relationship between public transfers and private inter‐household transfers over the past three decades using a Thailand data set. The results from econometric analysis show that there is no crowding‐out effect of public transfers on private inter‐household transfers for the country as a whole as well as for urban and rural households separately; instead, inter‐household private transfers increase along with public transfers.     

Impact of Childcare and Eldercare on Off‐farm Activities in Rural China

Using individual data collected in rural China and adopting Heckman's two‐step function, we examined the impact of childcare and eldercare on laborers' off‐farm activities. Our study finds that having school‐aged children has a negative impact on rural laborers' migration decisions and a positive impact on their decision to work in the local off‐farm employment market. As grandparents can help to take care of young children, the impact of preschoolers is insignificant. Having elderly family to care for decreases the income earned by female members of the family. Although both men and women are actively engaged in off‐farm employment today in rural China, this study shows that women are still the primary care providers for both children and the elderly. Therefore, reforming public school enrollment and high school/college entrance examination systems so that migrant children can stay with their parents, this will help rural laborers to migrate to cities. The present study also calls for more public services for preschoolers and the elderly in rural China.     

The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study

This article focuses on the wage elasticity of informal care supply to elderly parents employing an instrumental variable approach to account for the fact that the wage rate is likely to be correlated with omitted variables. Using the 1998 wave of the 1998 ), the wage elasticity of informal care supply is estimated to be negative and larger in magnitude than found previously. The lower bound of this elasticity is estimated to be ?1.8 for males and ?3.6 for females. Additional findings suggest that this wage elasticity differs by the type of care provided to elderly parents and that it is larger in magnitude among individuals with siblings and those with independently living parents. Overall the reductions in the informal care constitute about 18% of the labor supply response for men and about 56% of the labor supply response for women, which are not compensated by monetary transfers.     

Does wealth matter? An assessment of China's rural-urban migration on the education of left-behind children

This paper decomposes the impact of parental migration on the education of children left behind. In particular, we examine whether children are enrolled in school on a timely basis according to their age when their parents are away. We found both theoretical and empirical evidence to support that parental migration generates a strong positive impact on timely enrollment if a child is from a less wealthy background. However, the effect decreases with family wealth, and reverses after reaching a threshold; we find this point using family house size as our proxy and the turning point occurs at a moderate size of approximately 148 square meters. In addition, we find a compensating effect that migrants tend to spend more on a child's education investment to offset for the loss of parental time care. Lastly, we found the overall impact of parental migration is negative on the timely enrollment of child. Thus, with the important heterogeneities attributed to wealth, our results suggest that the left behind children of more affluent parents may be pushed into worse human capital outcomes; given the rapid development of China, it may be the case that the current cohort of left behind children is less likely to be enrolled in school than earlier cohorts.     

The Effect of Household Socioeconomic Status on the Demand for Child Health Care Services

The health of the child is an important factor for proper childhood development. Unfortunately, efforts to improve child health in many countries have not yielded the desired results as many children do not receive appropriate health care, hence contributing to high child mortality and morbidity from avoidable causes. To address this problem, it is important that we understand the factors that drive the demand for child health care services. This study, employing the binary and multinomial logistic regression models, examines the effect of household socioeconomic status on the demand for child health care in Ghana, Kenya and Zambia using data from the 2014 Demographic and Health Surveys. The results indicate that the likelihood of seeking appropriate health care for the child is higher when both parents make decisions. The findings further indicate that the odds of seeking treatment for the child falls with the birth order and age of the child, but increases with household wealth, insurance status and proximity to the health facility. Working women are more likely to demand child health care than their counterparts who are unemployed. Our results, therefore, suggest that improving child health will need the participation of both parents in the household on such decisions. Besides, there is the need to educate parents on the importance of seeking appropriate care for all the children born irrespective of the birth order and age of the child. There should also be deliberate efforts to improve the economic lot of households to enhance their purchasing power and encourage them to participate in health insurance schemes to enable effective utilization of health care services for the child in the efforts to improve child health.     

Life cycle and bequest savings A study of Japanese and U.S. households based on data from the 1984 NSFIE and the 1983 survey of consumer finances

This paper investigates whether the elderly save or dissave in light of two newly available sets of cross-section micro data, the 1983 “Survey of Consumer Finance” for the United States and the 1984 “National Survey of Family Income and Expenditure” for Japan. Contrary to dominant earlier findings we find for the United States that families after retirement dissave on average about a third of their peak wealth by the time of death, leaving the rest (mostly their homes) as bequests. For Japan, special handling is made to eliminate possible sample selection bias due to the different economic characteristics of the elderly forming independent households and those living with children. We find that the elderly belonging to both groups continue to save, and moreover, there appear to be significant signs of ongoing wealth transfer between the generations. The data in both countries also show that the elasticity of saving with respect to a life time income measure is significantly greater than unity, and more strongly so within higher age groups. J. Japan. Int. Econ., December 1988, 2(4), pp. 450–491. Department of Economics, University of Pennsylvania, Philadelphia, PA 19104-6297, and National Bureau of Economic Research.