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Old-Age Pension and Extended Families: How is Adult Children's Internal Migration Affected?

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  • Chen, Xi

    (Yale University)

Abstract

This paper makes use of the most recent social pension reform in rural China to examine whether receipt of the pension payment equips adult children of pensioners to migrate. Employing a regression discontinuity (hereafter RD) design to a primary longitudinal survey, this paper overcomes challenges in the literature that households eligible for pension payment might be systematically different from ineligible households and that it is difficult to separate the effect of pension from that of age or cohort heterogeneity. Around the pension eligibility age cut-off, results reveal large and significant increase among adult sons (but not daughters) to migrate out of their home county. Meanwhile, adult children are more likely to migrate out if their parents are healthy. Our Fuzzy RD estimations survive a standard set of key placebo tests and robustness checks.

Suggested Citation

  • Chen, Xi, 2016. "Old-Age Pension and Extended Families: How is Adult Children's Internal Migration Affected?," IZA Discussion Papers 10016, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp10016
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    Cited by:

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    4. Fang Wang & Haitao Zheng, 2021. "Do Public Pensions Improve Mental Wellbeing? Evidence from the New Rural Society Pension Insurance Program," IJERPH, MDPI, vol. 18(5), pages 1-14, March.
    5. Jing You & Miguel Niño-Zarazúa, 2017. "Smoothing or strengthening the ‘Great Gatsby Curve’? The intergenerational impact of China’s New Rural Pension Scheme," WIDER Working Paper Series 199, World Institute for Development Economic Research (UNU-WIDER).
    6. Leng, Ganxiao & Filipski, Mateusz J. & Qiu, Huanguang, 2022. "Impacts of City Life on Nutrition: Evidence from Resettlement Lotteries in China," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322130, Agricultural and Applied Economics Association.
    7. Zhaohua Zhang & Yuxi Luo & Derrick Robinson, 2019. "Who Are the Beneficiaries of China’s New Rural Pension Scheme? Sons, Daughters, or Parents?," IJERPH, MDPI, vol. 16(17), pages 1-16, August.
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    9. Maureen A. Pirog, 2018. "The Economics And Policy Ramifications Of An Aging Population," Contemporary Economic Policy, Western Economic Association International, vol. 36(3), pages 431-434, July.
    10. Jing You & Miguel Niño‐Zarazúa, 2019. "The Intergenerational Impact of China's New Rural Pension Scheme," Population and Development Review, The Population Council, Inc., vol. 45(S1), pages 47-95, December.

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    More about this item

    Keywords

    rural pension; RD Design; adult children; migration;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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