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The Prodigal Son: Does the Younger Brother Always Care for His Parents in Old Age?

Author

Listed:
  • Komura, Mizuki

    (Kwansei Gakuin University)

  • Ogawa, Hikaru

    (University of Tokyo)

Abstract

Studies have shown that the older sibling often chooses to live away from his elderly parents intending to free ride on the care provided by the younger child. In the presented model, we incorporate income effects and depict a different pattern frequently observed in Eastern countries; that is, the older sibling lives near his or her parents and takes care of them in old age. By generalizing the existing model, we show three cases of elderly parents being looked after by (1) the older sibling, (2) the younger sibling, and (3) both siblings, depending on the relative magnitude of the income effect and the strategic incentive for one sibling to free ride on the other. Our study also investigates the effect of changes in relative income on the level of total care received by parents.

Suggested Citation

  • Komura, Mizuki & Ogawa, Hikaru, 2016. "The Prodigal Son: Does the Younger Brother Always Care for His Parents in Old Age?," IZA Discussion Papers 9732, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9732
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    References listed on IDEAS

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    1. 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.

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    More about this item

    Keywords

    sibling; income effect; location choice; elderly care arrangement;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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