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Upstream Intergenerational Transfers

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  • Sloan, Frank
  • Harold H. Zhang

Abstract

This study analyzes upstream intergenerational transfers from middle-ages 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 test the altruistic assumption empirically and examine substitution between financial transfers and time transfers using data from the Health and Retirement Survey (HRS). Empirical results support the assumption that upstream transfers are motivated by altruism, particularly financial transfers. Poor parents receive more money. Overall, the results of time transfers provide less strong support for our model. A child with a high way tends to transfer money rather than time. Our findings on time transfers differ from predictions of models based on exchange motives. Public subsidies of nursing home care crowd out both private financial and time transfers.

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Bibliographic Info

Paper provided by Duke University, Department of Economics in its series Working Papers with number 95-15.

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Date of creation: 1995
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Handle: RePEc:duk:dukeec:95-15

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Web page: http://econ.duke.edu/

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Cited by:
  1. Sergi Jiménez-Martín & Cristina Vilaplana Prieto, 2013. "Informal Care and intergenerational transfers in European Countries," Working Papers 2013-25, FEDEA.
  2. Pierre Pestieau & Motohiro Sato, 2008. "Long-Term Care: the State, the Market and the Family," Economica, London School of Economics and Political Science, vol. 75(299), pages 435-454, 08.
  3. Elenka Brenna & Cinzia Di Novi, 2013. "Is caring for elderly parents detrimental to women’s mental health? The influence of the European North-South gradient," DISCE - Working Papers del Dipartimento di Economia e Finanza def4, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
  4. Jinkook Lee & Hyungsoo Kim, 2008. "A longitudinal analysis of the impact of health shocks on the wealth of elders," Journal of Population Economics, Springer, vol. 21(1), pages 217-230, January.
  5. CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, . "The economics of long-term care: a survey," CORE Discussion Papers RP -2466, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  6. Giacomo Pasini & Rob Alessie & Viola Angelini, 2011. "Is it true love? Altruism versus exchange in time and money transfers," Working Papers 2011_27, Department of Economics, University of Venice "Ca' Foscari".
  7. Yang-Ming Chang, 2009. "Strategic altruistic transfers and rent seeking within the family," Journal of Population Economics, Springer, vol. 22(4), pages 1081-1098, October.
  8. François-Charles Wolff & Manon Domingues Dos Santos, 2010. "Pourquoi les immigrés portugais veulent-ils tant retourner au pays ?," Économie et Prévision, Programme National Persée, vol. 195(4), pages 1-14.
  9. Olena Nizalova, 2010. "The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study," Discussion Papers 32, Kyiv School of Economics, revised Nov 2011.
  10. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer, vol. 24(4), pages 1443-1469, October.
  11. Cigno, Alessandro & Giannelli, Gianna Claudia & Rosati, Furio C. & Vuri, Daniela, 2004. "Is There Such a Thing as a Family Constitution? A Test Based on Credit Rationing," IZA Discussion Papers 1116, Institute for the Study of Labor (IZA).
  12. HwaJung Choi, 2011. "Parents’ Health and Adult Children’s Subsequent Working Status: A Perspective of Intergenerational Transfer and Time Allocation," Journal of Family and Economic Issues, Springer, vol. 32(3), pages 493-507, September.
  13. Wolff, François-Charles, 2006. "Les transferts ascendants au Bangladesh, une décision familiale?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 271-316, mars-juin.
  14. Paula C. Albuquerque, 2014. "The Interaction of Private Intergenerational Transfers Types," Working Papers Department of Economics 2014/03, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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