Old-Age Support in Developing Countries: Labor Supply, Intergenerational Transfers and Living Arrangements
AbstractWithout broad-based public pension schemes, the majority of the elderly in developing countries are left to rely on their own current and accumulated earnings and support from children as means of old-age support. We develop a cooperative bargaining model that allows us to jointly estimate the determinants of coresidency, financial transfers from non-coresiding children, and the labor-supply of elderly Indonesians. We find that many Indonesians, especially men, continue to work well into old age even if they are living with their adult children. There is little evidence that transfers are a substitute for the income support provided by the elderly parent’s own labor supply. Transfers are associated with a decline in hours of work only for non-coresiding mothers. Furthermore, transfers are not strongly related to parental need or the ability of the child to give.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 289.
Length: 47 pages
Date of creation: Apr 2001
Date of revision:
Publication status: published as 'Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?' in : Journal of Population Economics, 2008, 21(4), 1007-1033
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Murrugarra, Edmundo, 2011. "Employability and productivity among older workers : apolicy framework and evidence from Latin America," Social Protection Discussion Papers 63230, The World Bank.
- Barrientos, Armando, 2002. "Comparing Pension Schemes in Chile, Singapore, Brazil and South Africa," General Discussion Papers 30560, University of Manchester, Institute for Development Policy and Management (IDPM).
- Partha Deb & Cagla Okten & Una Osili, 2010.
"Giving to family versus giving to the community within and across generations,"
Journal of Population Economics,
Springer, vol. 23(3), pages 963-987, June.
- Partha Deb & Cagla Okten & Una Okonkwo Osili, 2002. "Giving to Family versus Giving to the Community Within and Across Generations," Hunter College Department of Economics Working Papers 02/6, Hunter College: Department of Economics.
- Luigi, Cannnari & Giovanni, D'Alessio, 2008. "Intergenerational Transfers in Italy," MPRA Paper 15111, University Library of Munich, Germany.
- Eric Edmonds & Kristin Mammen & Douglas L. Miller, 2004.
"Rearranging the Family? Income Support and Elderly Living Arrangements in a Low Income Country,"
NBER Working Papers
10306, National Bureau of Economic Research, Inc.
- Eric V. Edmonds & Kristin Mammen & Douglas L. Miller, 2005. "Rearranging the Family?: Income Support and Elderly Living Arrangements in a Low-Income Country," Journal of Human Resources, University of Wisconsin Press, vol. 40(1).
- Schüler, Dana, 2007. "Incentive Effects of Transfers within the Extended Family: The Case of Indonesia," Proceedings of the German Development Economics Conference, GÃ¶ttingen 2007 29, Verein für Socialpolitik, Research Committee Development Economics.
- Miguel, Edward A. & Gertler, Paul & Levine, David I., 2003.
"Did Industrialization Destroy Social Capital in Indonesia?,"
Center for International and Development Economics Research, Working Paper Series
qt9kt2m860, Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.
- Edward Miguel & Paul Gertler & David Levine, 2004. "Did Industrialization Destroy Social Capital in Indonesia?," Development and Comp Systems 0407006, EconWPA.
- Ha Trong Nguyen & Amy Y.C. Liu & Alison L. Booth, 2012.
"Monetary transfers from children and the labour supply of elderly parents: evidence from Vietnam,"
CEPR Discussion Papers
664, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- Ha Trong Nguyen & Amy Y.C. Liu & Alison L. Booth, 2012. "Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1177-1191, March.
- Nguyen, Trong-Ha & Liu, Amy Y.C. & Booth, Alison L., 2012. "Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam," IZA Discussion Papers 6974, Institute for the Study of Labor (IZA).
- Juergen Jung & Chung Tran, 2009.
"Transfers and Labor Market Behavior of the Elderly in Developing Countries: Theory and Evidence from Vietnam,"
2009-01, Towson University, Department of Economics, revised Oct 2009.
- Chung Tran, 2008. "Transfers and Labor Market Behavior of the Elderly in Developing Countries: Theory and Evidence from Vietnam," Caepr Working Papers 2008-018, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Firman Witoelar, 2005. "Inter-household Allocations within Extended Family: Evidence from the Indonesia Family Life Survey," Working Papers 912, Economic Growth Center, Yale University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.