IDEAS home Printed from https://ideas.repec.org/a/eee/socmed/v152y2016icp156-165.html
   My bibliography  Save this article

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

Author

Listed:
  • 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.

Suggested Citation

  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0277953616300430
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.socscimed.2016.01.042?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
    2. Johnston, David W. & Schurer, Stefanie & Shields, Michael A., 2013. "Exploring the intergenerational persistence of mental health: Evidence from three generations," Journal of Health Economics, Elsevier, vol. 32(6), pages 1077-1089.
    3. Stephen Wu, 2003. "The Effects of Health Events on the Economic Status of Married Couples," Journal of Human Resources, University of Wisconsin Press, vol. 38(1).
    4. Keating, Norah C. & Fast, Janet E. & Lero, Donna S. & Lucas, Sarah J. & Eales, Jacquie, 2014. "A taxonomy of the economic costs of family care to adults," The Journal of the Economics of Ageing, Elsevier, vol. 3(C), pages 11-20.
    5. Douglas A. Wolf, 2014. "Getting Help From Others: The Effects of Demand and Supply," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 69(Suppl_1), pages 59-64.
    6. Sergio Firpo & Nicole M. Fortin & Thomas Lemieux, 2009. "Unconditional Quantile Regressions," Econometrica, Econometric Society, vol. 77(3), pages 953-973, May.
    7. Van Houtven, Courtney Harold & Coe, Norma B. & Skira, Meghan M., 2013. "The effect of informal care on work and wages," Journal of Health Economics, Elsevier, vol. 32(1), pages 240-252.
    8. Carmichael, Fiona & Charles, Susan, 2003. "The opportunity costs of informal care: does gender matter?," Journal of Health Economics, Elsevier, vol. 22(5), pages 781-803, September.
    9. James P. Smith, 1999. "Healthy Bodies and Thick Wallets: The Dual Relation between Health and Economic Status," Journal of Economic Perspectives, American Economic Association, vol. 13(2), pages 145-166, Spring.
    10. Daniel H. Hill, 2006. "Wealth dynamics: reducing noise in panel data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(6), pages 845-860.
    11. Lara Gardner & Donna B. Gilleskie, 2012. "The Effects of State Medicaid Policies on the Dynamic Savings Patterns and Medicaid Enrollment of the Elderly," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 1082-1127.
    12. Shelly Lundberg & Robert A. Pollak, 1996. "Bargaining and Distribution in Marriage," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 139-158, Fall.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Garbinti, Bertrand & García-Peñalosa, Cecilia & Pecheu, Vladimir & Savignac, Frederique, 2023. "Trends and Inequality in Lifetime Earnings in France," CEPR Discussion Papers 18472, C.E.P.R. Discussion Papers.
    2. Jérémy Tanguy, 2022. "The impact of parents' health shocks on children's health behaviors," French Stata Users' Group Meetings 2022 22, Stata Users Group.
    3. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bauer, Jan Michael & Sousa-Poza, Alfonso, 2015. "Impacts of Informal Caregiving on Caregiver Employment, Health, and Family," IZA Discussion Papers 8851, Institute of Labor Economics (IZA).
    2. Ha Trong Nguyen & Luke B. Connelly, 2017. "The Dynamics of Informal Care Provision in an Australian Household Panel Survey: Previous Work Characteristics and Future Care Provision," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 395-419, September.
    3. Michio Yuda & Jinkook Lee, 2016. "Effects of Informal Caregivers’ Health on Care Recipients," The Japanese Economic Review, Springer, vol. 67(2), pages 192-210, June.
    4. Poterba, James & Venti, Steven & Wise, David A., 2018. "Longitudinal determinants of end-of-life wealth inequality," Journal of Public Economics, Elsevier, vol. 162(C), pages 78-88.
    5. Norton, E.C., 2016. "Health and Long-Term Care," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 951-989, Elsevier.
    6. Michelle Sovinsky & Steven Stern, 2016. "Dynamic modelling of long-term care decisions," Review of Economics of the Household, Springer, vol. 14(2), pages 463-488, June.
    7. Huamin Chai & Rui Fu & Peter C. Coyte, 2021. "Unpaid Caregiving and Labor Force Participation among Chinese Middle-Aged Adults," IJERPH, MDPI, vol. 18(2), pages 1-25, January.
    8. Nguyen, Ha Trong & Connelly, Luke Brian, 2014. "The effect of unpaid caregiving intensity on labour force participation: Results from a multinomial endogenous treatment model," Social Science & Medicine, Elsevier, vol. 100(C), pages 115-122.
    9. Norén, Anna, 2020. "Sick of my parents? Consequences of parental ill health on adult children," Working Paper Series 2020:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Huamin Chai & Rui Fu & Peter C. Coyte, 2021. "Does Unpaid Caregiving Erode Working Hours Among Middle-Aged Chinese Adults?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 977-999, October.
    11. Andrea M. Mühlenweg & Franz G. Westermaier & Brant Morefield, 2016. "Parental health and child behavior: evidence from parental health shocks," Review of Economics of the Household, Springer, vol. 14(3), pages 577-598, September.
    12. Heger, Dörte & Korfhage, Thorben, 2017. "Does the negative effect of caregiving on work persist over time?," Ruhr Economic Papers 703, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Costa-Font, Joan & Jiménez-Martín, Sergi & Vilaplana-Prieto, Cristina, 2022. "Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers?," Journal of Health Economics, Elsevier, vol. 84(C).
    14. Kolodziej, Ingo & Coe, Norma B. & Van Houtven, Courtney Harold, 2023. "Intensive informal care and impairments in work productivity and activity," Ruhr Economic Papers 1010, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Esteban García-Miralles & Miriam Gensowski, 2020. "Are Children's Socio-Emotional Skills Shaped by Parental Health Shocks?," CEBI working paper series 20-21, University of Copenhagen. Department of Economics. The Center for Economic Behavior and Inequality (CEBI).
    16. Stampini, Marco & Oliveri, María Laura & Ibarrarán, Pablo & Londoño, Diana & Rhee, Ho June (Sean) & James, Gillinda M., 2020. "Working Less to Take Care of Parents? Labor Market Effects of Family Long-Term Care in Four Latin American Countries," IZA Discussion Papers 13792, Institute of Labor Economics (IZA).
    17. Pilar García-Gómez & Hans van Kippersluis & Owen O’Donnell & Eddy van Doorslaer, 2013. "Long-Term and Spillover Effects of Health Shocks on Employment and Income," Journal of Human Resources, University of Wisconsin Press, vol. 48(4), pages 873-909.
    18. Wen, Jiayi & Huang, Haili, 2024. "Parental health penalty on adult children’s employment: Gender differences and long-term consequences," Journal of Health Economics, Elsevier, vol. 95(C).
    19. Stephen Drinkwater, 2015. "Informal Caring and Labour Market Outcomes Within England and Wales," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 273-286, February.
    20. Joan Costa-Font & Cristina Vilaplana-Prieto, 2023. "‘Investing’ in care for old age? An examination of long-term care expenditure dynamics and its spillovers," Empirical Economics, Springer, vol. 64(1), pages 1-30, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:socmed:v:152:y:2016:i:c:p:156-165. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/315/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.