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How does dementia onset in parents influence unmarried adult children's wealth

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  • Arora, Kanika

Abstract

There is a growing concern that long-term care (LTC) needs of older adults lead to negative financial consequences for their family members. This paper examines whether the onset of dementia in parents influences wealth change among unmarried adult children regardless of their status as informal caregivers. Longitudinal data from seven waves (1998–2010) of the Health and Retirement Study (1540 person-wave observations) are used to analyze this question. Unconditional quantile regressions demonstrate that as a result of parental dementia diagnosis, unmarried adult children have lower wealth accumulation above the median of the wealth change distribution. These effects are more pronounced for unmarried adult children without siblings. Further, this response is observed to persist in the subsequent period as well. Both losses in labor income and nursing home expenditures may play a role in leading to wealth declines.

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  • Arora, Kanika, 2016. "How does dementia onset in parents influence unmarried adult children's wealth," Social Science & Medicine, Elsevier, vol. 152(C), pages 156-165.
    • Handle: RePEc:eee:socmed:v:152:y:2016:i:c:p:156-165
    DOI: 10.1016/j.socscimed.2016.01.042
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    2. Agree Emily M. & Wolf Douglas A., 2018. "Disability Measurement in the Health and Retirement Study," Forum for Health Economics & Policy, De Gruyter, vol. 21(1), pages 1-14, June.
    3. Jérémy Tanguy, 2022. "The impact of parents' health shocks on children's health behaviors," French Stata Users' Group Meetings 2022 22, Stata Users Group.

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