SMU SOE Online Seminar (Jun 26, 2020): Should I stay or should I go? Parental transfers, residential decisions of children and old-age support. Evidence from China
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TOPIC:
SHOULD I STAY OR SHOULD I GO? PARENTAL TRANSFERS, RESIDENTIAL DECISIONS OF CHILDREN AND OLD-AGE SUPPORT. EVIDENCE FROM CHINA
ABSTRACT
We study the impact of parental transfers to their children in early life on the child's support to the parents at older ages either in time or with money. We conjecture that the type of transfer from the parents has an impact on what kind of help they receive from their children. Using data from the China Health and Retirement Longitudinal Study (CHARLS) we find that transfers in children's education are associated with higher financial help at older ages. In contrast, transfers to support the children's marriage are positively linked with time support, such as more visits, from children to their parents. The children's residential decisions are identi fied as an important mechanism: transfers into education tend to let children move further away whereas marital transfers are associated with children staying closer to one's parents.