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Intergenerational transfers in long term care

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  • Mónika López-Anuarbe

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Abstract

How are parental inter-vivos transfers to their children and children’s informal care of parents influenced by personal characteristics, family conditions and state specific long term care policies? AHEAD data from 1993 and 1995 and a two-party choice model are used to guide the estimation of OLS and binary logit models of the amount and likelihood of inter-vivos transfers to children and informal care of parents. Results suggest that both parents’ characteristics and their offspring’s characteristics affect parental gifts to children and children’s time assistance to their parents, highlighting the interdependent nature of these decisions. Furthermore, though state policies did not consistently affect parental gift giving, the availability of state respite care support -short-term “breaks” for informal family caregivers- (1 % significance level) and adult day care centers (5 % significance level) were positively related to the amount and likelihood of children’s time assistance to their parents. These findings highlight the importance of some state programs such as respite care support in encouraging intra-family support for the elderly. Support for programs that reduce the caregiving burden may encourage more children to care for their elderly parents. Copyright Springer Science+Business Media, LLC 2013

Suggested Citation

  • Mónika López-Anuarbe, 2013. "Intergenerational transfers in long term care," Review of Economics of the Household, Springer, vol. 11(2), pages 235-258, June.
  • Handle: RePEc:kap:reveho:v:11:y:2013:i:2:p:235-258
    DOI: 10.1007/s11150-012-9156-7
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    References listed on IDEAS

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    Cited by:

    1. Shoshana Grossbard, 2014. "A note on altruism and caregiving in the family: do prices matter?," Review of Economics of the Household, Springer, vol. 12(3), pages 487-491, September.
    2. Christine Ho, 2015. "Grandchild care, intergenerational transfers, and grandparents’ labor supply," Review of Economics of the Household, Springer, vol. 13(2), pages 359-384, June.
    3. Charlene Kalenkoski, 2014. "Does generosity beget generosity? The relationships between transfer receipt and formal and informal volunteering," Review of Economics of the Household, Springer, vol. 12(3), pages 547-563, September.
    4. Ivo Bischoff & Nataliya Kusa, 2016. "Should there be a more active role of family care assistants in long-term care provision? – survey evidence on the view of German citizens," MAGKS Papers on Economics 201642, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Atsushi Miyake & Masaya Yasuoka, 2016. "Which Should the Government Subsidize: Child Care or Elderly Care?," Discussion Paper Series 144, School of Economics, Kwansei Gakuin University, revised Jun 2016.

    More about this item

    Keywords

    Inter vivos transfers; Informal caregiving; Long term care policies; Time assistance; Financial assistance; J14;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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