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Effects of Intergenerational Transfers on Elderly Coresidence with Adult Children: Evidence from Rural India

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Author Info
Sarmistha Pal () (Brunel University and IZA)

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Abstract

The present paper argues that intergenerational transfers between elderly parents and adult children are important determinants of any coresidency arrangement though generally overlooked in the existing literature. In this respect the paper distinguishes between exchange of both financial and other kinds of transfers between elderly parents and adult children and then examines the effects of these transfers on coresidency taking account of the inherent endogeneity of these transfers to coresidency decision. There is evidence that the effects of transfers on coresidency arrangements could be biased if one does not correct for the endogeneity bias. The corrected estimates derived from a system of correlated and recursive system of transfers and coresidency equations suggest that the probability of coresidence is generally lower among the better off elderly; the likelihood is also lower for the older and female elderly without a spouse and also those with poor health, thus necessitating social protection for these disadvantaged elderly.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2847.

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Length: 37 pages
Date of creation: Jun 2007
Date of revision:
Handle: RePEc:iza:izadps:dp2847

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Related research
Keywords: co-residence with children; intergenerational transfers; elderly health and wealth effects; simultaneity bias; correlated recursive model;

Other versions of this item:

Find related papers by JEL classification:
H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
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    Other versions:
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