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Access to Pensions, Old-Age Support, and Child Investment in China

Author

Listed:
  • Xiaoyue Shan
  • Albert Park

Abstract

This work studies how access to public pensions affects old-age support and child investment in traditional societies. Guided by predictions from an overlapping generations model, we analyze the influences of a new pension program in rural China, using a difference-in-differences approach. We find that the program crowds out transfers from working-age adults, especially men, to their elderly parents. Interestingly, the impact on child investment significantly differs by child gender. While adult parents increase educational investment in sons, their investment in daughters appears to decrease. Our findings highlight the unintended consequences of public pensions on parental investment.

Suggested Citation

  • Xiaoyue Shan & Albert Park, 2025. "Access to Pensions, Old-Age Support, and Child Investment in China," Journal of Human Resources, University of Wisconsin Press, vol. 60(5), pages 1639-1670.
  • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:5:p:1639-1670
    Note: DOI: https://doi.org/10.3368/jhr.0321-11555R3
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    More about this item

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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