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Do siblings free‐ride in “being there” for parents?

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  • Shiko Maruyama
  • Meliyanni Johar

Abstract

There is a potential free‐rider problem when several siblings consider future provision of care for their elderly parents. Siblings can commit to not providing long‐term support by living far away. If location decisions are made by birth order, older siblings may enjoy a first‐mover advantage. We study siblings' location decisions relative to their parents by estimating a sequential participation game for U.S. data. We find (i) limited strategic behavior, that is, in two‐child families, more than 92% of children have a dominant strategy, and (ii) a nonnegligible public good problem, that is, in families with multiple children, 18.3% more parents would have had at least one child living nearby had location decisions been made cooperatively.

Suggested Citation

  • Shiko Maruyama & Meliyanni Johar, 2017. "Do siblings free‐ride in “being there” for parents?," Quantitative Economics, Econometric Society, vol. 8(1), pages 277-316, March.
    • Handle: RePEc:wly:quante:v:8:y:2017:i:1:p:277-316
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    2. Maruyama, Shiko, 2015. "The effect of coresidence on parental health in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 1-22.
    3. Bergeot, Julien & Tenand, Marianne, 2021. "Does informal care delay nursing home entry? Evidence from Dutch linked survey and administrative data," CEPREMAP Working Papers (Docweb) 2105, CEPREMAP.
    4. Mizuki Komura & Hikaru Ogawa, 2017. "The prodigal son: does the younger brother always care for his parentsin old age?," Applied Economics, Taylor & Francis Journals, vol. 49(22), pages 2153-2165, May.
    5. Lingguo Cheng & Hong Liu & Ye Zhang & Zhong Zhao, 2018. "The heterogeneous impact of pension income on elderly living arrangements: evidence from China’s new rural pension scheme," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 155-192, January.
    6. Maruyama, Shiko, 2014. "Estimation of finite sequential games," Journal of Econometrics, Elsevier, vol. 178(2), pages 716-726.
    7. Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2015. "Reciprocity in the Formation of Intergenerational Coresidence," Journal of Family and Economic Issues, Springer, vol. 36(2), pages 192-209, June.

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