Inter Vivos Health Transfers: Final Days of Japanese Elderly Parents
AbstractThe empirical evidence of the effect of intergenerational coresidence by elderly parents and their adult children on parental health remains fairly inconclusive. The aim of this paper is twofold: (1) to estimate a reliable coresidence effect and (2) to investigate why the coresidence effect can be negative. I argue that coresidence may worsen parental health, with coresidence burdens on children creating disincentives for parents to invest in their health. Studying Japanese data reveals: (i) an insignificant, negative average treatment effect of coresidence; (ii) a significant, negative treatment effect on the treated; and (iii) that parents with high care needs and limited resources, typically widowed mothers, are in coresidence experiencing the largest negative impact. Results are consistent with the theory predictions. In particular, what leads to the negative coresidence effect is not the base period health status but coresidence burdens, such as disability and dementia.
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Bibliographic InfoPaper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2012-20.
Length: 56 pages
Date of creation: Mar 2012
Date of revision:
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intergenerational transfers; health investment; informal care; heterogeneous treatment effects; selection on unobservables; coresidence; structural equations.;
Find related papers by JEL classification:
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- I12 - Health, Education, and Welfare - - Health - - - Health Production
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