IDEAS home Printed from https://ideas.repec.org/p/swe/wpaper/2010-07.html
   My bibliography  Save this paper

Intergenerational Cohabitation in Modern Indonesia: Filial Support and Dependence

Author

Listed:
  • Meliyanni Johar

    () (University of Technology Sydney)

  • Shiko Maruyama

    () (School of Economics, The University of New South Wales)

Abstract

Intergenerational cohabitation is becoming less common in modern societies. The opportunity costs of caring for parents are increasing, and the notion of filial piety is weakening. Meanwhile, in most developing Asian countries, a public old-age support system has yet to be developed. This paper delineates the positions of parents and children in the family decision of living arrangements, which have important policy implications on the reliability of filial support as a form of old-age security. We use panel data from Indonesia to study factors that initiate cohabitation by elderly parents and their adult children. Transition analysis provides a clearer interpretation of causality than cross-sectional analysis. We find that while cohabitation is motivated by parental needs, especially those of mothers, the family decision is influenced to a larger extent by the private gains and costs of the children. Cohabitation tends to occur when the child is unmarried or has a low level of education. However, parents who cohabitate tend to be healthy and wealthy, and they also generally live with a spouse. We also find that elderly parents who are poor and recent migrants are most at risk of not receiving filial support. The development of public support programs would result in potential welfare gains, particularly for those vulnerable to not receiving filial support.

Suggested Citation

  • Meliyanni Johar & Shiko Maruyama, 2010. "Intergenerational Cohabitation in Modern Indonesia: Filial Support and Dependence," Discussion Papers 2010-07, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2010-07
    as

    Download full text from publisher

    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2010-07.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heckman, James & Singer, Burton, 1984. "A Method for Minimizing the Impact of Distributional Assumptions in Econometric Models for Duration Data," Econometrica, Econometric Society, vol. 52(2), pages 271-320, March.
    2. Carmichael, F. & Charles, S. & Hulme, C., 2010. "Who will care? Employment participation and willingness to supply informal care," Journal of Health Economics, Elsevier, vol. 29(1), pages 182-190, January.
    3. Duncan Thomas & Elizabeth Frankenberg & James P. Smith, 2001. "Lost but Not Forgotten: Attrition and Follow-up in the Indonesia Family Life Survey," Journal of Human Resources, University of Wisconsin Press, vol. 36(3), pages 556-592.
    4. Mark R. Rosenzweig & Kenneth I. Wolpin, 1985. "Specific Experience, Household Structure, and Intergenerational Transfers: Farm Family Land and Labor Arrangements in Developing Countries," The Quarterly Journal of Economics, Oxford University Press, vol. 100(Supplemen), pages 961-987.
    5. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
    6. Cameron,A. Colin & Trivedi,Pravin K., 2008. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9787111235767.
    7. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 151-182, July.
    8. Ken Yamada, 2006. "Intra-family transfers in Japan: intergenerational co-residence, distance, and contact," Applied Economics, Taylor & Francis Journals, vol. 38(16), pages 1839-1861.
    9. repec:dau:papers:123456789/13781 is not listed on IDEAS
    10. Lisa Cameron & Deborah Cobb-Clark, 2008. "Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(4), pages 1007-1033, October.
    11. Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2010. "Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive," Discussion Papers 2010-05, School of Economics, The University of New South Wales.
    12. repec:dau:papers:123456789/1879 is not listed on IDEAS
    13. 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.
    14. Roméo Fontaine & Agnès Gramain & Jérôme Wittwer, 2009. "Providing care for an elderly parent: interactions among siblings?," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1011-1029.
    15. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    16. Norma B. Coe & Courtney Harold Van Houtven, 2009. "Caring for mom and neglecting yourself? The health effects of caring for an elderly parent," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 991-1010.
    17. Merril Silverstein, 1995. "Stability and change in temporal distance between the elderly and their children," Demography, Springer;Population Association of America (PAA), vol. 32(1), pages 29-45, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meliyanni Johar & Shiko Maruyama, 2012. "Externality and Strategic Interaction in the Location Choice of Siblings under Altruism toward Parents," Working Papers 201201, ARC Centre of Excellence in Population Ageing Research (CEPAR), Australian School of Business, University of New South Wales.
    2. 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.
    3. 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.
    4. Meliyanni Johar & Shiko Maruyama, 2014. "Does Coresidence Improve An Elderly Parent'S Health?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(6), pages 965-983, September.
    5. repec:eee:hapoch:v1_993 is not listed on IDEAS
    6. repec:wly:quante:v:8:y:2017:i:1:p:277-316 is not listed on IDEAS
    7. 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.

    More about this item

    Keywords

    informal care; living arrangements; intergenerational transfer; cohabitation; Indonesia; finite mixture logit;

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D1 - Microeconomics - - Household Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:swe:wpaper:2010-07. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hongyi Li) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/senswau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.