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Intergenerational Cohabitation in Modern Indonesia: Filial Support and Dependence

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  • Meliyanni Johar

    ()
    (University of Technology Sydney)

  • Shiko Maruyama

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

Abstract

Intergenerational cohabitation is becoming less common in modern societies. The opportunity costs of caring for parents are increasing, and the notion of filial piety is weakening. Meanwhile, in most developing Asian countries, a public old-age support system has yet to be developed. This paper delineates the positions of parents and children in the family decision of living arrangements, which have important policy implications on the reliability of filial support as a form of old-age security. We use panel data from Indonesia to study factors that initiate cohabitation by elderly parents and their adult children. Transition analysis provides a clearer interpretation of causality than cross-sectional analysis. We find that while cohabitation is motivated by parental needs, especially those of mothers, the family decision is influenced to a larger extent by the private gains and costs of the children. Cohabitation tends to occur when the child is unmarried or has a low level of education. However, parents who cohabitate tend to be healthy and wealthy, and they also generally live with a spouse. We also find that elderly parents who are poor and recent migrants are most at risk of not receiving filial support. The development of public support programs would result in potential welfare gains, particularly for those vulnerable to not receiving filial support.

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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 2010-07.

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Length: 41 pages
Date of creation: Apr 2010
Date of revision:
Handle: RePEc:swe:wpaper:2010-07

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Keywords: informal care; living arrangements; intergenerational transfer; cohabitation; Indonesia; finite mixture logit;

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References

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  1. Rosenzweig, Mark R & Wolpin, Kenneth I, 1985. "Specific Experience, Household Structure, and Intergenerational Transfers: Farm Family Land and Labor Arraangements in Developing Countries," The Quarterly Journal of Economics, MIT Press, vol. 100(5), pages 961-87, Supp..
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  10. Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2010. "Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive," Discussion Papers 2010-05, School of Economics, The University of New South Wales.
  11. Thomas, D. & Frankenberg, E. & Smith, J.P., 2000. "Lost But Not Forgotten Attribution and Follow-up in the Indonesian Family Life Survey," Papers 00-03, RAND - Labor and Population Program.
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  16. Lisa Cameron & Deborah Cobb-Clark, 2008. "Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?," Journal of Population Economics, Springer, vol. 21(4), pages 1007-1033, October.
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Cited by:
  1. Shiko Maruyama & Meliyanni Johar, 2013. "Do Siblings Free-Ride in "Being There" for Parents?," Discussion Papers 2013-06, School of Economics, The University of New South Wales.
  2. Meliyanni Johar & Shiko Maruyama, 2012. "Externality and Strategic Interaction in the Location Choice of Siblings under Altruism toward Parents," Working Papers 201201, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
  3. Meliyanni Johar & Shiko Maruyama, 2011. "Does Coresidence Improve an Elderly Parent’s Health?," Discussion Papers 2011-08, School of Economics, The University of New South Wales.

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