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Spend it, save it, or transfer it?

Author

Listed:
  • Yanan ZHANG

    (Oxford Institute of Population Ageing, University of Oxford)

  • Alessandra GUARIGLIA

    (Department of Economics, University of Birmingham)

Abstract

We are the first to study how the resources freed up when a child, child-in-law, or grandchild moves out of a household are reallocated, taking into account the age of the leaver. Using the 2011 and 2013 waves of the China Health and Retirement Longitudinal Study, we document that, on average, the remaining household members save part of the resources freed up by the leaver and consume another part. Differentiating the leavers by age, we find that after the departure of a member of the younger generation aged 0–24, the remaining household members save the resources freed up by the leaver. However, if the leaver is above 24, they spend the freed-up resources. Our results are robust to the use of different specifications, estimation methods, and consumption aggregates. Finally, we observe that remittances directed toward non-resident offspring do not increase after the departure of a member of the younger generation.

Suggested Citation

  • Yanan ZHANG & Alessandra GUARIGLIA, 2026. "Spend it, save it, or transfer it?," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 92(2), pages 179-215, June.
    • Handle: RePEc:ctl:louvde:v:92:y:2026:i:2:p:179-215
    DOI: 10.1017/dem.2024.8
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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