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Can I live with you after I retire? Retirement, old age support, and internal migration of older adults in China

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  • Chen, Simiao
  • Jin, Zhangfeng
  • Prettner, Klaus

Abstract

This study examines the causal impact of retirement on migration decisions. Using a regression discontinuity (RD) design approach, combined with a nationally representative sample of 228,855 Chinese older adults, we find that retirement increases the probability of migration by 12.9 p.p. (an 80% increase in migration). Approximately 38% of the total migration effects can be attributed to inter-temporal substitution. Retirement-induced migrants are lower-educated, have restricted access to social security, and come from origins with high living costs. Relying on old age support from adult children in migration is a likely mechanism. These findings are consistent with a simple theoretical model of migration for older adults.

Suggested Citation

  • Chen, Simiao & Jin, Zhangfeng & Prettner, Klaus, 2020. "Can I live with you after I retire? Retirement, old age support, and internal migration of older adults in China," Department of Economics Working Paper Series 303, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:7808
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    More about this item

    Keywords

    Retirement; Internal migration; Old age support; China; Regression discontinuity design;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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