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Intervivos Giving Over the Lifecycle

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  • Michael D. Hurd
  • James P. Smith
  • Julie Zissimopoulos

Abstract

The authors use longitudinal data from the Health and Retirement Study on money parent give to adult children over sixteen years. They study the scale of giving, regularity over time, and factors shaping it. Parents give $5,000 to children with the one-third of parents who give, averaging $14,000 over two years. There is persistence in giving declining with age and resulting in total gifts of $50,000 from age 53 to death excluding bequests. Single parents who expect a long life span and are risk averse give less money to children; consistent with a lifecycle model of consumption including transfers.

Suggested Citation

  • Michael D. Hurd & James P. Smith & Julie Zissimopoulos, 2011. "Intervivos Giving Over the Lifecycle," Working Papers WR-524-1, RAND Corporation.
    • Handle: RePEc:ran:wpaper:wr-524-1
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    References listed on IDEAS

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    Cited by:

    1. Steven J. Haider & Kathleen McGarry, 2018. "Parental Investments in College and Later Cash Transfers," Demography, Springer;Population Association of America (PAA), vol. 55(5), pages 1705-1725, October.
    2. Emily E. Wiemers & Judith A. Seltzer & Robert F. Schoeni & V. Joseph Hotz & Suzanne M. Bianchi, 2019. "Stepfamily Structure and Transfers Between Generations in U.S. Families," Demography, Springer;Population Association of America (PAA), vol. 56(1), pages 229-260, February.
    3. Tom Emery, 2013. "Intergenerational transfers and European families: Does the number of siblings matter?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 29(10), pages 247-274.
    4. Marla Ripoll, 2021. "The Patterns of Parental Intervivos Transfers to Adult Children," Working Paper 7144, Department of Economics, University of Pittsburgh.
    5. Naijia Guo & Charles Ka Yui Leung, 2021. "Do elite colleges matter? The impact on entrepreneurship decisions and career dynamics," Quantitative Economics, Econometric Society, vol. 12(4), pages 1347-1397, November.
    6. Albertini,Marco, 2016. "Ageing and family solidarity in Europe : patterns and driving factors of intergenerational support," Policy Research Working Paper Series 7678, The World Bank.
    7. Ronald Lee & Gretchen Donehower, 2011. "Private transfers in comparative perspective," Chapters, in: Ronald Lee & Andrew Mason (ed.), Population Aging and the Generational Economy, chapter 8, Edward Elgar Publishing.
    8. Lee, Hyojung & Myers, Dowell & Painter, Gary & Thunell, Johanna & Zissimopoulos, Julie, 2020. "The role of parental financial assistance in the transition to homeownership by young adults," Journal of Housing Economics, Elsevier, vol. 47(C).
    9. Abigail Loxton, 2019. "Gender Differences in Inter Vivos Transfers," CAEPR Working Papers 2019-002, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    10. Solveig Cunningham & Kathryn Yount & Michal Engelman & Emily Agree, 2013. "Returns on Lifetime Investments in Children in Egypt," Demography, Springer;Population Association of America (PAA), vol. 50(2), pages 699-724, April.
    11. Julie Zissimopoulos & Johanna Thunell & Stipica Mudrazija, 2020. "Parental Income and Wealth Loss and Transfers to Their Young Adult Children," Journal of Family and Economic Issues, Springer, vol. 41(2), pages 316-331, June.
    12. Solveig A. Cunningham & Gloria L. Beckles & Jannie Nielsen, 2022. "Declines in Health and Support Between Parents and Adult Children: Insights from Diabetes," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(4), pages 1699-1723, August.
    13. Yang, Siqiang & Ripoll, Marla, 2023. "Financial transfers from parents to adult children," Journal of Economic Behavior & Organization, Elsevier, vol. 208(C), pages 286-303.
    14. Troy B. Felver & Jane Yoo, 2023. "Welfare Aspects of Estate and Gift Taxes in Life Cycle Economies," Korean Economic Review, Korean Economic Association, vol. 39, pages 381-411.

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    More about this item

    Keywords

    Intergenerational transfers; life-cycle consumption; household behavior;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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