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No free lunch, Buddy: past housing transfers and informal care later in life

Author

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  • Emanuele Ciani

    () (Bank of Italy)

  • Claudio Deiana

    () (European Commission, Joint Research Centre)

Abstract

Previous empirical literature on the relationship between intergenerational transfers of assets and services has mostly focused on contemporary exchanges. In contrast, we provide novel evidence that parents who helped their adult children in the past are rewarded by a greater likelihood of receiving informal care later in life. To this end we use Italian data to look at retrospective information about how parents help their children to purchase houses when they get married. Our estimates show a positive association with the current provision of informal care, which is robust to controlling for a large set of individual and family characteristics. We provide evidence that this can be explained by various self-interest motives, relating to theories based either on bilateral exchange or on the presence of a third generation of grandchildren, such as those including a demonstration effect or the concept of a family constitution.

Suggested Citation

  • Emanuele Ciani & Claudio Deiana, 2017. "No free lunch, Buddy: past housing transfers and informal care later in life," Temi di discussione (Economic working papers) 1117, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_1117_17
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    Cited by:

    1. Canta, Chiara & Cremer, Helmuth, 2019. "Long-term care policy with nonlinear strategic bequests," European Economic Review, Elsevier, vol. 119(C), pages 548-566.

    More about this item

    Keywords

    informal care; housing; intergenerational transfers; geographical proximity.;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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