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Do children prevent their poor old parents from working?

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  • Rao, Ziwei

Abstract

This study provides the first empirical evidence of the causal impact of fertility outcomes on old-age labor supply, by innovatively employing population policies in the early 1970s and the sex of the eldest child within families as plausibly exogenous instruments of fertility. The results show strong impact of children on preventing old parents from strenuous works at senior age, e.g. having one more child significantly reduces post-retirement aged rural parents' probability of working by 12.8 percentage points. Such impact is especially strong among the more vulnerable elder parents with worse health and little pension benefits. Furthermore, the results suggest that population policies might jeopardize the elderly well being by reducing family sizes and compelling old parents in bad health to continue working.

Suggested Citation

  • Rao, Ziwei, 2021. "Do children prevent their poor old parents from working?," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242424, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc21:242424
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    More about this item

    Keywords

    fertility; elderly labor supply; old-age support; health; pension;
    All these keywords.

    JEL classification:

    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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