Transferências intergeracionais privadas na Amazônia rural brasileira [Private intergenerational transfers in the Rural Brazilian Amazon Region]

What motivates family members to share resources? Past research argues for, on the one hand, love and altruism, and on the other, the expectation of reciprocity. Drawing on this literature, this paper examines intergenerational transfers between small farmers and their non-coresident children in the rural area around the city of Altamira, Pará, Brazil. We apply GoM (Grade of Membership) models to create profiles of private transfers, using data collected in 2005 by a team from Indiana University. The results show three profiles: low intergenerational transfers, high levels of transfers of visits and help, and high levels of transfers of visits and money. There is no clear difference in profile by birth order, but we do find sex differences in profile. Men are more likely to send money while women provide time transfers (work and visits). Upward transfers are most common from children with high levels of education or living in urban areas, suggesting a repayment of prior investments made by parents. Thus, our empirical evidence supports theories arguing that transfers are motivated by intertemporal contracts between parents and children, and that altruistic theories of family transfers should be rethought among rural agricultural populations in contexts characterized by many environmental and institutional challenges.