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Institutional Pension Insurance in Sustainable Development of Urban–Rural Intergenerational Support

Author

Listed:
  • Chen Kang

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

  • Mingwang Cheng

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

  • Xinyu Wei

    (School of Economics and Management, Tongji University, Shanghai 200092, China)

Abstract

Parental downward support plays an important role in urban and rural sustainable development. It is of great significance to study parental downward transfers and their motivation. However, there is no consensus on the motivation behind parental downward transfers in China. This study examines the timing and monetary impacts of social pensions on parental downward transfers and assesses the motivations behind them. We found that pension insurance encouraged rural parents to provide time and monetary support to their children. Unlike rural parents, pension insurance increased the monetary support of urban parents but inhibited their time support. Because of the higher income level of urban parents and the better organization of the domestic service market, parents have the motivation and conditions to reduce their time support and increase monetary support. Our findings highlight the importance of parental downward transfers in urban and rural sustainable development.

Suggested Citation

  • Chen Kang & Mingwang Cheng & Xinyu Wei, 2024. "Institutional Pension Insurance in Sustainable Development of Urban–Rural Intergenerational Support," Agriculture, MDPI, vol. 14(3), pages 1-19, March.
    • Handle: RePEc:gam:jagris:v:14:y:2024:i:3:p:430-:d:1352650
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    References listed on IDEAS

    as
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    7. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-546, June.
    8. Rosenzweig, Mark R & Wolpin, Kenneth I, 1993. "Intergenerational Support and the Life-Cycle Incomes of Young Men and Their Parents: Human Capital Investments, Coresidence, and Intergenerational Financial Transfers," Journal of Labor Economics, University of Chicago Press, vol. 11(1), pages 84-112, January.
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