IDEAS home Printed from https://ideas.repec.org/a/spr/eurpop/v38y2022i3d10.1007_s10680-022-09611-w.html
   My bibliography  Save this article

Family Size and Parental Wealth: The Role of Family Transfers in Europe

Author

Listed:
  • Zachary Winkle

    (CNRS
    University of Oxford)

  • Christiaan Monden

    (University of Oxford
    Leverhulme Centre for Demographic Science)

Abstract

As baby boomers enter retirement, an increasing portion of the population in Europe will rely on wealth as a source of financial security. We address two research questions: what is the association between family size, i.e. the number of children, and wealth for adults who are preparing for or have entered retirement and does the generosity of family transfers moderate that association? Data from the Survey of Health, Ageing, and Retirement in Europe (SHARE) are used to estimate the relationship between family size and the total household net worth of men and women between ages 50–65, born 1939–1967 from 14 European countries. We use logistic and linear regression modelling to investigate the probability of zero or negative wealth and net worth percentile rank. We find that adults with four or more children are more likely to be in debt and have less wealth than childless adults. In contrast, adults with two and three children have more wealth. We provide evidence that the generosity of family transfers ameliorates the negative association between larger family sizes and wealth, but may exacerbate wealth inequality by benefiting two and three child families most.

Suggested Citation

  • Zachary Winkle & Christiaan Monden, 2022. "Family Size and Parental Wealth: The Role of Family Transfers in Europe," European Journal of Population, Springer;European Association for Population Studies, vol. 38(3), pages 401-428, August.
    • Handle: RePEc:spr:eurpop:v:38:y:2022:i:3:d:10.1007_s10680-022-09611-w
    DOI: 10.1007/s10680-022-09611-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10680-022-09611-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10680-022-09611-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Vicki L. Bogan, 2013. "Household investment decisions and offspring gender: parental accounting," Applied Economics, Taylor & Francis Journals, vol. 45(31), pages 4429-4442, November.
    2. Lucie Schmidt & Purvi Sevak, 2006. "Gender, Marriage, And Asset Accumulation In The United States," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 139-166.
    3. Philipp M. Lersch, 2019. "Fewer Siblings, More Wealth? Sibship Size and Wealth Attainment," European Journal of Population, Springer;European Association for Population Studies, vol. 35(5), pages 959-986, December.
    4. Alfred Michael Dockery & Sherry Bawa, 2015. "The Impact of Children on Australian Couples’ Wealth Accumulation," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 139-150, June.
    5. Michelle Maroto, 2018. "Saving, Sharing, or Spending? The Wealth Consequences of Raising Children," Demography, Springer;Population Association of America (PAA), vol. 55(6), pages 2257-2282, December.
    6. Astrid Kunze, 2020. "The effect of children on male earnings and inequality," Review of Economics of the Household, Springer, vol. 18(3), pages 683-710, September.
    7. Modigliani, Franco, 1986. "Life Cycle, Individual Thrift, and the Wealth of Nations," American Economic Review, American Economic Association, vol. 76(3), pages 297-313, June.
    8. JohnKarl Scholz & Ananth Seshadri, 2007. "Children and Household Wealth," Working Papers wp158, University of Michigan, Michigan Retirement Research Center.
    9. Mardi Dungey & Vitali Alexeev & Jing Tian & Alfred Michael Dockery & Sherry Bawa, 2015. "The Impact of Children on Australian Couples’ Wealth Accumulation," The Economic Record, The Economic Society of Australia, vol. 91, pages 139-150, June.
    10. Marie-Thérèse Letablier & Angela Luci & Antoine Math & Olivier Thévenon, 2009. "The costs of raising children and the effectiveness of policies to support parenthood in European countries: a Literature Review," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00408899, HAL.
    11. Jan Tin, 2000. "Life-cycle hypothesis, propensities to save, and demand for financial assets," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 24(2), pages 110-121, June.
    12. James Smith & Michael Ward, 1980. "Asset Accumulation And Family Size," Demography, Springer;Population Association of America (PAA), vol. 17(3), pages 243-260, August.
    13. Anne Gauthier, 2007. "The impact of family policies on fertility in industrialized countries: a review of the literature," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 26(3), pages 323-346, June.
    14. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240, National Bureau of Economic Research, Inc.
    15. Gauthier, Anne Helene, 1999. "Historical trends in state support for families in Europe (post-1945)," Children and Youth Services Review, Elsevier, vol. 21(11-12), pages 937-965.
    16. Alexis Yamokoski & Lisa Keister, 2006. "The Wealth Of Single Women: Marital Status And Parenthood In The Asset Accumulation Of Young Baby Boomers In The United States," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 167-194.
    17. Tomáš Sobotka & Éva Beaujouan, 2014. "Two Is Best? The Persistence of a Two-Child Family Ideal in Europe," Population and Development Review, The Population Council, Inc., vol. 40(3), pages 391-419, September.
    18. Angus Deaton, 2005. "Franco Modigliani and the life-cycle theory of consumption," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 58(233-234), pages 91-107.
    19. Saraceno, Chiara, 2016. "Varieties of familialism: Comparing four southern European and East Asian welfare regimes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(4), pages 314-326.
    20. Grinstein-Weiss, Michal & Hun Yeo, Yeong & Zhan, Min & Charles, Pajarita, 2008. "Asset holding and net worth among households with children: Differences by household type," Children and Youth Services Review, Elsevier, vol. 30(1), pages 62-78, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ryszard Kowalski & Agnieszka Strzelecka & Agnieszka Wałęga & Grzegorz Wałęga, 2023. "Do Children Matter to the Household Debt Burden?," Journal of Family and Economic Issues, Springer, vol. 44(4), pages 1007-1022, December.
    2. Ján Buleca & Nikola Šubová & Lenka Malièká, 2022. "The Relationship between Household Wealth and Financial Vulnerability in the Post-communist Countries of the Euro Area," Journal of Economics / Ekonomicky casopis, Institute of Economic Research, Slovak Academy of Sciences, vol. 70(7-8), pages 569-588, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michelle Maroto, 2018. "Saving, Sharing, or Spending? The Wealth Consequences of Raising Children," Demography, Springer;Population Association of America (PAA), vol. 55(6), pages 2257-2282, December.
    2. Rehm, Miriam & Schneebaum, Alyssa & Schuster, Barbara, 2022. "Intra-couple wealth inequality: What's demographics got to do with it?," ifso working paper series 22, University of Duisburg-Essen, Institute for Socioeconomics (ifso).
    3. Miriam Rehm & Alyssa Schneebaum & Barbara Schuster, 2022. "Intra-Couple Wealth Inequality: What’s Socio-Demographics Got to Do with it?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 681-720, October.
    4. Alyssa Schneebaum & Miriam Rehm & Katharina Mader & Patricia Klopf & Katarina Hollan, 2014. "The Gender Wealth Gap in Europe," Department of Economics Working Papers wuwp186, Vienna University of Economics and Business, Department of Economics.
    5. Grinstein-Weiss, Michal & Hun Yeo, Yeong & Zhan, Min & Charles, Pajarita, 2008. "Asset holding and net worth among households with children: Differences by household type," Children and Youth Services Review, Elsevier, vol. 30(1), pages 62-78, January.
    6. Erin Ruel & Robert Hauser, 2013. "Explaining the Gender Wealth Gap," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1155-1176, August.
    7. Jonathan Vespa & Matthew Painter, 2011. "Cohabitation History, Marriage, and Wealth Accumulation," Demography, Springer;Population Association of America (PAA), vol. 48(3), pages 983-1004, August.
    8. Michelle Maroto & Laura Aylsworth, 2017. "Assessing the Relationship Between Gender, Household Structure, and Net Worth in the United States," Journal of Family and Economic Issues, Springer, vol. 38(4), pages 556-571, December.
    9. Natálie Švarcová & Petr Švarc, 2009. "The Financial Impact of Government Policies on Families with Children in the Czech Republic, Hungary, Poland, and Slovakia," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 3(1), pages 048-068, March.
    10. Angela Luci-Greulich & Olivier Thévenon, 2013. "The Impact of Family Policies on Fertility Trends in Developed Countries," European Journal of Population, Springer;European Association for Population Studies, vol. 29(4), pages 387-416, November.
    11. Fox, Jonathan & Klüsener, Sebastian & Myrskylä, Mikko, 2018. "Is a positive relationship between fertility and economic development emerging at the sub-national regional level? Theoretical considerations and evidence from Europe," LSE Research Online Documents on Economics 88295, London School of Economics and Political Science, LSE Library.
    12. Nicoletta Balbo & Francesco C. Billari & Melinda Mills, 2013. "Fertility in Advanced Societies: A Review of Research," European Journal of Population, Springer;European Association for Population Studies, vol. 29(1), pages 1-38, February.
    13. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, Luxembourg Institute of Socio-Economic Research (LISER).
    14. Olivier Thévenon & Angela Luci, 2012. "Reconciling Work, Family and Child Outcomes: What Implications for Family Support Policies?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 31(6), pages 855-882, December.
    15. Lixing Li & Xiaoyu Wu, 2017. "The Consequences of Having a Son on Family Wealth in Urban China," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(2), pages 378-393, June.
    16. Tullio Jappelli & Mario Padula & Luigi Pistaferri, 2008. "A Direct Test of The Buffer-Stock Model of Saving," Journal of the European Economic Association, MIT Press, vol. 6(6), pages 1186-1210, December.
    17. Cäcilia Lipowski & Ralf A. Wilke & Bertrand Koebel, 2020. "Exploring the Puzzle of Human Reproduction: Register Data based Evidence from France and Germany," Working Papers of BETA 2020-24, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    18. Alicia Adsera, 2011. "Where Are the Babies? Labor Market Conditions and Fertility in Europe [Où sont les bébés ? Conditions du marché du travail et fécondité en Europe]," European Journal of Population, Springer;European Association for Population Studies, vol. 27(1), pages 1-32, February.
    19. Anglade, Boaz & Useche, Pilar & Deere, Carmen Diana, 2017. "Decomposing the Gender Wealth Gap in Ecuador," World Development, Elsevier, vol. 96(C), pages 19-31.
    20. Sierminska, Eva & Piazzalunga, Daniela & Grabka, Markus M., 2018. "Transitioning towards more equality? Wealth gender differences and the changing role of explanatory factors over time," GLO Discussion Paper Series 252, Global Labor Organization (GLO).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurpop:v:38:y:2022:i:3:d:10.1007_s10680-022-09611-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.