The division of parental transfers in Europe
In this paper we explore the patterns of the division of inter-vivos financial transfers from parents to adult children in a sample of 12 European countries. We exploit two waves of the Survey of Health, Aging, and Retirement in Europe (SHARE) for 50+. Contrary to previous studies, we find a higher frequency of parents dividing equally their transfers. We argue that altruistic parents are also concerned with norms of equal division, and hence don’t fully offset child income differences. The parents start to give larger transfers to poorer children if the child income inequality becomes unbearable from the parent’s view. We find econometric evidence suggesting this behaviour under different specifications and strategies. Furthermore, contextual variables like the gini coefficient and pension expenditures help to explain country differences with respect to the division of inter-vivos transfers. The lower frequency of equal division found in studies with American data may respond to the higher inequality and relatively lower pension expenditures in US.
|Date of creation:||25 Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +353 1 7164615
Fax: +353 1 7161108
Web page: http://www.ucd.ie/geary/Email:
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Stefan Hochguertel & Henry Ohlsson, 2000.
"Compensatory inter vivos gifts,"
Economics Working Paper Archive
wp_319, Levy Economics Institute.
- Stefan Hochguertel & Henry Ohlsson, 2001. "Compensatory Inter Vivos Gifts," Macroeconomics 0012006, EconWPA.
- Stefan Hochguertal & Henry Ohlsson, 2000. "Inter Vivos Gifts: Compensatory or Equal Sharing?," Econometric Society World Congress 2000 Contributed Papers 0699, Econometric Society.
- Hochguertel , Stefan & Ohlsson, Henry, 2000. "Compensatory inter vivos gifts," Working Papers in Economics 31, University of Gothenburg, Department of Economics.
- 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.
- Lundholm, Michael & Ohlsson, Henry, 2000.
"Post mortem reputation, compensatory gifts and equal bequests,"
Elsevier, vol. 68(2), pages 165-171, August.
- Lundholm, Michael & Ohlsson, Henry, 1999. "Post Mortem Reputation, Compensatory Gifts and Equal Bequests," Working Paper Series 1999:3, Uppsala University, Department of Economics.
- Lundholm, Michael & Ohlsson, Henry, 1999. "Post Mortem Reputation, Compensatory Gifts and Equal Bequests," Research Papers in Economics 1999:1, Stockholm University, Department of Economics.
- Lundholm, M. & Ohlsson, H., 1999. "Post Mortem Reputation, Compensatory Gifts and Equal Bequests," Papers 1999:3, Uppsala - Working Paper Series.
- Ernesto Villanueva, 2001.
"Parental altruism under imperfect information: Theory and evidence,"
Economics Working Papers
566, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2002.
- Ernesto Villanueva, 2003. "Parental altruism under imperfect information: theory and evidence," Working Papers 19, Barcelona Graduate School of Economics.
- Ernesto Villanueva, 2002. "Parental altruism under imperfect information: Theory and evidence," Economics Working Papers 650, Department of Economics and Business, Universitat Pompeu Fabra.
- Colm Harmon & Hessel Oosterbeek & Ian Walker, 2003. "The Returns to Education: Microeconomics," Journal of Economic Surveys, Wiley Blackwell, vol. 17(2), pages 115-156, 04.
- repec:dgr:uvatin:20070074 is not listed on IDEAS
- Wolff, Francois-Charles, 2006. "Microeconomic models of family transfers," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
When requesting a correction, please mention this item's handle: RePEc:ucd:wpaper:201220. 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: (Geary Tech)
If references are entirely missing, you can add them using this form.