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The Provision of Time to the Elderly by Their Children

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  • Axel Borsch-Supan
  • Jagadeesh Gokhale
  • Laurence J. Kotlikoff
  • John N. Morris

Abstract

This paper uses matched data on the elderly and their children to study the provision of time by children to the elderly. It develops a Tobit model as well as a structural model to analyze the determinants of this decision. The main determinants of the amount of time given to parents appear to be the parent's age, reported health, and institutionalization status, and the children's age, health, and sex. Older parents, less healthy parents, and non-institutionalized parents receive more time from their children, while younger children, healthier children, and female children provide more time. In contrast to these demographic determinants, economic variables, such as children's wage rate and income levels, appear to play a rather insignificant role in the provision of time. In addition, the evidence does not support the hypothesis that parents purchase time from their children.

Suggested Citation

  • Axel Borsch-Supan & Jagadeesh Gokhale & Laurence J. Kotlikoff & John N. Morris, 1990. "The Provision of Time to the Elderly by Their Children," NBER Working Papers 3363, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:3363
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    References listed on IDEAS

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    1. Michael J. Boskin & Laurence J. Kotlikoff & Michael Knetter, 1985. "Changes in the Age Distribution of Income in the United States, 1968-1984," NBER Working Papers 1766, National Bureau of Economic Research, Inc.
    2. B. Douglas Bernheim & Andrei Shleifer & Lawrence H. Summers, 1984. "Bequests as a Means of Payment," NBER Working Papers 1303, National Bureau of Economic Research, Inc.
    3. Frances Kobrin, 1976. "The fall in household size and the rise of the primary individual in the United States," Demography, Springer;Population Association of America (PAA), vol. 13(1), pages 127-138, February.
    4. Robert Michael & Victor Fuchs & Sharon Scott, 1980. "changes in the propensity to live alone: 1950–1976," Demography, Springer;Population Association of America (PAA), vol. 17(1), pages 39-56, February.
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    Cited by:

    1. Aydogan Ulker, 2008. "Household structure and consumption insurance of the elderly," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 373-394, April.
    2. Glazer, Amihai & Kanniainen, Vesa & Niskanen, Esko, 2003. "Bequests, control rights, and cost-benefit analysis," European Journal of Political Economy, Elsevier, vol. 19(1), pages 71-82, March.
    3. Benoit Dostie & Pierre Thomas Léger, 2005. "The Living Arrangement Dynamics of Sick, Elderly Individuals," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 989-1014.
    4. Axel Borsch-Supan & Daniel L. McFadden & Reinhold Schnabel, 1996. "Living Arrangements: Health and Wealth Effects," NBER Chapters,in: Advances in the Economics of Aging, pages 193-216 National Bureau of Economic Research, Inc.
    5. Donald Cox & Beth J. Soldo, 2004. "Motivation for Money and Care that Adult Children Provide for Parents: Evidence from "Point-Blank" Survey Questions," Working Papers, Center for Retirement Research at Boston College 2004-17, Center for Retirement Research.

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