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Are children repaying parental loans? Evidence from Malaysia using matched child-parent pairs

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  • Cheolsung Park

Abstract

This paper tests whether interhousehold transfers from children to parents in developing countries are motivated by altruism or intended to be repayments of implicit parental loans taken up by children for human capital investment. For the test, a sample of child-parent pairs is constructed by matching the original (parent) and the split-off (child) household information from the Second Malaysian Family Life Survey. The findings of the paper do not support that child-to-parent transfers are entirely altruistic or that they are entirely intended to be repayments of parental loans. For individuals of post-secondary education, we find evidence that money transfers to the parents are mixture of altruistic transfers and repayments. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Cheolsung Park, 2003. "Are children repaying parental loans? Evidence from Malaysia using matched child-parent pairs," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(2), pages 243-263, May.
  • Handle: RePEc:spr:jopoec:v:16:y:2003:i:2:p:243-263
    DOI: 10.1007/s001480200123
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    File URL: http://hdl.handle.net/10.1007/s001480200123
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    Citations

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    Cited by:

    1. Cheolsung Park, 2014. "Why do children transfer to their parents? Evidence from South Korea," Review of Economics of the Household, Springer, vol. 12(3), pages 461-485, September.
    2. Carlos Chiapa & Laura Juarez, 2016. "The schooling repayment hypothesis for private transfers: evidence from the PROGRESA/Oportunidades experiment," Review of Economics of the Household, Springer, vol. 14(4), pages 811-828, December.
    3. Cheolsung Park, 2010. "How Are Upstream Transfers Determined? New Evidence From South Korea," Pacific Economic Review, Wiley Blackwell, vol. 15(4), pages 532-553, October.
    4. Hsin-Ling Hsieh & Shin-Yi Chou & Echu Liu & Hsien-Ming Lien, 2015. "Strengthening or Weakening? The Impact of Universal Health Insurance on Intergenerational Coresidence in Taiwan," Demography, Springer;Population Association of America (PAA), vol. 52(3), pages 883-904, June.
    5. Loren Brandt & Aloysius Siow & Hui Wang, 2015. "Compensating for unequal parental investments in schooling," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(2), pages 423-462, April.

    More about this item

    Keywords

    JEL classification: J12; J14; O15; Key words: Intergenerational transfer; altruism; parental loan;

    JEL classification:

    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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