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Reciprocity with Two-sided Altruism in Intergenerational Transfers: Evidence from Indonesian Family Life Survey Data

In: The Economics of Reciprocity, Giving and Altruism

Author

Listed:
  • Lakshmi K. Raut

    (University of Chicago)

  • Lien H. Tran

    (Federal Trade Commission)

Abstract

The main purpose of this chapter is to examine the motive for investment by parents in the human capital of children. The difference between patterns of intergenerational transfers and investment in the human capital of children in developed countries on the one hand, and those of most of the developing countries on the other, is that while in all countries, parents invest substantial resources in the human capital of children, in less-developed countries we observe substantial resource transfers from children to parents but such transfers are much less observed in developed countries. These patterns of transfer are sometimes used to postulate the hypothesis that in less-developed countries, parental investment in their children is more like lending to children, since children cannot borrow from the private capital market to finance their education, whereas in developed countries, parental investment in their children is mainly due to parental altruism towards their children.

Suggested Citation

  • Lakshmi K. Raut & Lien H. Tran, 2000. "Reciprocity with Two-sided Altruism in Intergenerational Transfers: Evidence from Indonesian Family Life Survey Data," International Economic Association Series, in: L.-A. Gérard-Varet & S.-C. Kolm & J. Mercier Ythier (ed.), The Economics of Reciprocity, Giving and Altruism, chapter 17, pages 298-313, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-62745-5_17
    DOI: 10.1007/978-1-349-62745-5_17
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    Cited by:

    1. Jonathan Meer & Harvey S Rosen, 2007. "Altruism and the Child-Cycle of Alumni Donations," Working Papers 150, Princeton University, Department of Economics, Center for Economic Policy Studies..
    2. Jonathan Meer & Harvey S. Rosen, 2007. "Altruism and the Child-Cycle of Alumni Giving," NBER Working Papers 13152, National Bureau of Economic Research, Inc.

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