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Inequality among Young Adult Siblings, Public Assistance Programs, and Intergenerational Living Arrangements

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  • Mark R. Rosenzweig
  • Kenneth I. Wolpin

Abstract

In this paper we examine the allocation of resources in the form of shared housing provided by parents to their young adult children in the context of a model in which there are multiple optimizing offspring. We set out a framework for estimation that considers the constraints of available data for studying these family interactions, in particular, the problem that the characteristics and decisions of all adult siblings affect parental decisions and thus need to be accounted for in empirical analyses. Application of the intergenerational family framework to longitudinal data on the residence patterns of adult siblings and on state-specific welfare benefits indicates that results concerning cross-sib interactions are not robust to estimation procedure in part because of the difficulty of measuring all adult sib characteristics when families differ in sib-size. An estimation procedure that controls for all permanent and transitory parent characteristics as well as the influence of varying family sizes and sib characteristics, and passes at least one specification test, indicates that family-sib interactions are significant in the parental provision of shared housing.

Suggested Citation

  • Mark R. Rosenzweig & Kenneth I. Wolpin, 1994. "Inequality among Young Adult Siblings, Public Assistance Programs, and Intergenerational Living Arrangements," Journal of Human Resources, University of Wisconsin Press, vol. 29(4), pages 1101-1125.
  • Handle: RePEc:uwp:jhriss:v:29:y:1994:4:1:p:1101-1125
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    Cited by:

    1. Joseph G. Altonji & Rosa L. Matzkin, 2001. "Panel Data Estimators for Nonseparable Models with Endogenous Regressors," NBER Technical Working Papers 0267, National Bureau of Economic Research, Inc.
    2. R. A. Moffitt, "undated". "The Effect of Welfare on Marriage and Fertility: What Do We Know and What Do We Need to Know?," Institute for Research on Poverty Discussion Papers 1153-97, University of Wisconsin Institute for Research on Poverty.
    3. Tansel, Aysit, 2011. "Intergenerational educational mobility in Turkey," MPRA Paper 68435, University Library of Munich, Germany.
    4. Gaëlle Ferrant, 2014. "The Multidimensional Gender Inequalities Index (MGII): A Descriptive Analysis of Gender Inequalities Using MCA," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(2), pages 653-690, January.
    5. David C. Ribar, 2015. "Is Leaving Home a Hardship?," Southern Economic Journal, Southern Economic Association, vol. 81(3), pages 598-618, January.
    6. Silles, Mary A., 2011. "The intergenerational effects of parental schooling on the cognitive and non-cognitive development of children," Economics of Education Review, Elsevier, vol. 30(2), pages 258-268, April.

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