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Inter Vivos Health Transfers: Final Days of Japanese Elderly Parents

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  • Shiko Maruyama

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

Abstract

The empirical evidence of the effect of intergenerational coresidence by elderly parents and their adult children on parental health remains fairly inconclusive. The aim of this paper is twofold: (1) to estimate a reliable coresidence effect and (2) to investigate why the coresidence effect can be negative. I argue that coresidence may worsen parental health, with coresidence burdens on children creating disincentives for parents to invest in their health. Studying Japanese data reveals: (i) an insignificant, negative average treatment effect of coresidence; (ii) a significant, negative treatment effect on the treated; and (iii) that parents with high care needs and limited resources, typically widowed mothers, are in coresidence experiencing the largest negative impact. Results are consistent with the theory predictions. In particular, what leads to the negative coresidence effect is not the base period health status but coresidence burdens, such as disability and dementia.

Suggested Citation

  • Shiko Maruyama, 2012. "Inter Vivos Health Transfers: Final Days of Japanese Elderly Parents," Discussion Papers 2012-20, School of Economics, The University of New South Wales.
  • Handle: RePEc:swe:wpaper:2012-20
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2012-20.pdf
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    References listed on IDEAS

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    1. 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.
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    4. Grossman, Michael, 1972. "On the Concept of Health Capital and the Demand for Health," Journal of Political Economy, University of Chicago Press, vol. 80(2), pages 223-255, March-Apr.
    5. Li, Lydia W. & Zhang, Jiaan & Liang, Jersey, 2009. "Health among the oldest-old in China: Which living arrangements make a difference?," Social Science & Medicine, Elsevier, vol. 68(2), pages 220-227, January.
    6. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
    7. Lund, Rikke & Due, Pernille & Modvig, Jens & Holstein, Bjørn Evald & Damsgaard, Mogens Trab & Andersen, Per Kragh, 2002. "Cohabitation and marital status as predictors of mortality--an eight year follow-up study," Social Science & Medicine, Elsevier, vol. 55(4), pages 673-679, August.
    8. 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.
    9. Edward C. Norton & Courtney Harold Van Houtven, 2006. "Inter-vivos Transfers and Exchange," Southern Economic Journal, Southern Economic Association, vol. 73(1), pages 157-172, July.
    10. James Heckman, 1997. "Instrumental Variables: A Study of Implicit Behavioral Assumptions Used in Making Program Evaluations," Journal of Human Resources, University of Wisconsin Press, vol. 32(3), pages 441-462.
    11. A. Walter-Ginzburg & T. Blumstein & A. Chetrit & B. Modan, 2002. "Social Factors and Mortality in the Old-Old in Israel," Journals of Gerontology: Series B, Gerontological Society of America, vol. 57(5), pages 308-318.
    12. repec:aph:ajpbhl:1997:87:3:371-377_7 is not listed on IDEAS
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    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. Courtin, Emilie & Avendano, Mauricio, 2016. "Under one roof: The effect of co-residing with adult children on depression in later life," Social Science & Medicine, Elsevier, vol. 168(C), pages 140-149.
    4. Sergi Jiménez-Martín & Cristina Vilaplana Prieto, 2013. "Informal Care and intergenerational transfers in European Countries," Working Papers 2013-25, FEDEA.

    More about this item

    Keywords

    intergenerational transfers; health investment; informal care; heterogeneous treatment effects; selection on unobservables; coresidence; structural equations.;

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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