Who Cares for the Elderly? Intrafamily Resource Allocation and Migration in Mexico
AbstractChildren are sometimes viewed as a method of insuring against disability and providing income after retirement, especially in developing countries with limited markets for credit and insurance. But how do children decide on how much care to provide to their parents in old age, particularly in families with many children? This paper takes a non-cooperative view of family decision-making and estimates best response functions for individual physical and financial contributions as a function of siblings' contributions. I account for the endogeneity of siblings' contributions by using siblings' characteristics as instrumental variables. By estimating these decisions as part of a two-stage game that includes a migration decision, I also consider the impact of migration on elderly care. I find evidence that children's financial contributions function as strategic complements while their time contributions operate as strategic substitutes, suggesting that giving may be based on both strategic bequest and public good motivations. Despite these findings, evidence from a simulation generating an exogenous switch in child's migrant status shows a likely decrease in time and financial contributions for most elderly parents.
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 Stanford Institute for Economic Policy Research in its series Discussion Papers with number 06-031.
Date of creation: Jan 2007
Date of revision:
elderly care; intrafamily allocation; migration;
Find related papers by JEL classification:
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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.:
- Audrey Light & Kathleen McGarry, 2003.
"Why Parents Play Favorites: Explanations for Unequal Bequests,"
03-01, Ohio State University, Department of Economics.
- Audrey Light & Kathleen McGarry, 2004. "Why Parents Play Favorites: Explanations for Unequal Bequests," American Economic Review, American Economic Association, vol. 94(5), pages 1669-1681, December.
- Audrey Light & Kathleen McGarry, 2003. "Why Parents Play Favorites: Explanations for Unequal Bequests," NBER Working Papers 9745, National Bureau of Economic Research, Inc.
- Steven Stern & Bridget Hiedemann, 1999.
"Strategic Play Among Family Members When Making Long-Term Care Decisions,"
Virginia Economics Online Papers
321, University of Virginia, Department of Economics.
- Hiedemann, Bridget & Stern, Steven, 1999. "Strategic play among family members when making long-term care decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 40(1), pages 29-57, September.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986.
"The Strategic Bequest Motive,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(3), pages S151-82, July.
- Browning, M. & Bourguignon, F. & Chiappori, P.A. & Lechene, V., 1992.
"Incomes and Outcomes: A structural Model of Intra-Household Allocation,"
DELTA Working Papers
92-23, DELTA (Ecole normale supérieure).
- Browning, Martin & Francois Bourguignon & Pierre-Andre Chiappori & Valerie Lechene, 1994. "Income and Outcomes: A Structural Model of Intrahousehold Allocation," Journal of Political Economy, University of Chicago Press, vol. 102(6), pages 1067-96, December.
- Midori Wakabayashi & Charles Y. Horioka, 2006.
"Is the Eldest Son Different? The Residential Choice of Siblings in Japan,"
NBER Working Papers
12655, National Bureau of Economic Research, Inc.
- Wakabayashi, Midori & Horioka, Charles Yuji, 2009. "Is the eldest son different? The residential choice of siblings in Japan," Japan and the World Economy, Elsevier, vol. 21(4), pages 337-348, December.
- Midori Wakabayashi & Charles Yuji Horioka, 2006. "Is the Eldest Son Different? The Residential Choice of Siblings in Japan," ISER Discussion Paper 0674, Institute of Social and Economic Research, Osaka University.
- Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2007.
"Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents,"
CESifo Working Paper Series
1908, CESifo Group Munich.
- Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2007. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," CESifo Economic Studies, CESifo, vol. 53(1), pages 69-96, March.
- Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2006. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," NBER Working Papers 12358, National Bureau of Economic Research, Inc.
- Chen, Zhiqi & Woolley, Frances, 2001.
"A Cournot-Nash Model of Family Decision Making,"
Royal Economic Society, vol. 111(474), pages 722-48, October.
- Steven Stern & Tennille J. Neuharth, 2000.
"Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents,"
Virginia Economics Online Papers
323, University of Virginia, Department of Economics.
- Tennille J. Checkovich & Steven Stern, 2002. "Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 441-478.
- Thomas, D., 1989.
"Intra-Household Resource Allocation: An Inferential Approach,"
586, Yale - Economic Growth Center.
- Duncan Thomas, 1990. "Intra-Household Resource Allocation: An Inferential Approach," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 635-664.
- Pezzin, Liliana E & Schone, Barbara Steinberg, 1997. "The Allocation of Resources in Intergenerational Households: Adult Children and Their Elderly Parents," American Economic Review, American Economic Association, vol. 87(2), pages 460-64, May.
- Sandler, Todd & Murdoch, James C, 1990. "Nash-Cournot or Lindahl Behavior? An Empirical Test for the NATO Allies," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 875-94, November.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- Francisca M. Antman, 2010. "Adult Child Migration and the Health of Elderly Parents Left behind in Mexico," American Economic Review, American Economic Association, vol. 100(2), pages 205-08, May.
- Randall Kuhn & Bethany Everett & Rachel Silvey, 2011. "The Effects of Children’s Migration on Elderly Kin’s Health: A Counterfactual Approach," Demography, Springer, vol. 48(1), pages 183-209, February.
- Malone, Lauren, 2007. "Migrantsâ€™ Remittances and Investments in Childrenâ€™s Human Capital: The Role of Asymmetric Preferences in Mexico," Center for Global, International and Regional Studies, Working Paper Series qt23n6s2p3, Center for Global, International and Regional Studies, UC Santa Cruz.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anne Shor).
If references are entirely missing, you can add them using this form.