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Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive

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Author Info

  • Meliyanni Johar

    ()
    (University of Technology Sydney)

  • Shiko Maruyama

    ()
    (School of Economics, The University of New South Wales)

  • Sayaka Nakamura

    ()
    (Yokohama City University)

Abstract

The strategic bequest motive implies that children may want to live with their parents and provide care for them with the expectation of inheriting a larger portion of their bequest. This paper examines this hypothesis by focusing on the transition to coresidence by elderly Japanese parents and their children using underutilized Japanese panel data. Unlike previous studies, evidence for the bequest motive is generally tenuous. In addition, our use of a two-component mixture logit model identifies the minority group of families that follows the bequest motive and the majority group that does not.

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File URL: http://research.economics.unsw.edu.au/RePEc/papers/2010-05.pdf
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Bibliographic Info

Paper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2010-05.

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Length: 46 pages
Date of creation: Feb 2010
Date of revision:
Handle: RePEc:swe:wpaper:2010-05

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Related research

Keywords: informal care; intergenerational transfer; bequest motive; living arrangements; coresidence; finite mixture logit; health shock;

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Cited by:
  1. Shiko Maruyama, 2012. "Inter Vivos Health Transfers: Final Days of Japanese Elderly Parents," Discussion Papers 2012-20, School of Economics, The University of New South Wales.
  2. Meliyanni Johar & Shiko Maruyama, 2010. "Intergenerational Cohabitation in Modern Indonesia: Filial Support and Dependence," Discussion Papers 2010-07, School of Economics, The University of New South Wales.
  3. Shinya Sugawara & Jiro Nakamura, 2013. "Is Elderly Care Socialized in Japan? Analyzing the Effects of the 2006 Amendment to the LTCI on the Female Labor Supply," CIRJE F-Series CIRJE-F-888, CIRJE, Faculty of Economics, University of Tokyo.
  4. Shinichiro Iwata & Keiko Tamada, 2014. "The backward-bending commute times of married women with household responsibility," Transportation, Springer, vol. 41(2), pages 251-278, March.
  5. Norifumi Yukutake & Shinichiro Iwata & Takako Idee, 2011. "Strategic Interaction between Inter Vivos Gifts and Housing Acquisition," Global COE Hi-Stat Discussion Paper Series gd11-201, Institute of Economic Research, Hitotsubashi University.

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