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Parental Benefits from Intergenerational Coresidence: Empirical Evidence from Rural Pakistan

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  • Anjini Kochar

Abstract

This paper explains the negative correlation between the days of work reported by fathers in rural Pakistani households and the incomes earned by their coresident adult sons, thereby contributing to research on the benefits from intergenerational coresidence. I find that the decline in fathers' days of work that accompanies increases in sons' incomes primarily results because such income is used to finance expenditures on household public goods, such as consumer durables and ceremonies. Empirical tests reject most alternative explanations of the benefits of coresidence, including the belief that sons contribute to fathers' wealth.

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  • Anjini Kochar, 2000. "Parental Benefits from Intergenerational Coresidence: Empirical Evidence from Rural Pakistan," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1184-1209, December.
    • Handle: RePEc:ucp:jpolec:v:108:y:2000:i:6:p:1184-1209
    DOI: 10.1086/317683
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    Cited by:

    1. Olivier Donni & Eliane El Badaoui, 2024. "Labor Supply In The Extended Household: Economies Of Scale, Self‐Selection, And The Intrahousehold Distribution Of Resources In South Africa," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(1), pages 191-215, February.
    2. Deborah Cobb-Clark & Lisa A Cameron, 2005. "Do Coresidency with and Financial Transfers from Children Reduce the Need for Elderly Parents to Work in Developing Countries?," CEPR Discussion Papers 508, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    3. Sara Tafuro, 2020. "An Economic Framework for Persisting Son Preference: Rethinking the Role of Intergenerational Support," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 39(6), pages 983-1007, December.
    4. Basu, Kaushik & Felkey, Amanda, 2004. "A Theory of Efficiency Wage with Community-Based Income Sharing," Working Papers 04-10, Cornell University, Center for Analytic Economics.
    5. Pal, Sarmistha, 2007. "Effects of Intergenerational Transfers on Elderly Coresidence with Adult Children: Evidence from Rural India," IZA Discussion Papers 2847, Institute of Labor Economics (IZA).
    6. Lingguo Cheng & Hong Liu & Ye Zhang & Zhong Zhao, 2018. "The heterogeneous impact of pension income on elderly living arrangements: evidence from China’s new rural pension scheme," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(1), pages 155-192, January.
    7. Donald Cox, 2002. "Private Inter-household Transfers in Vietnam in the Early and Late 1990s," Boston College Working Papers in Economics 524, Boston College Department of Economics.
    8. Ha Trong Nguyen & Amy Y.C. Liu & Alison L. Booth, 2012. "Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 48(8), pages 1177-1191, March.
    9. La Ferrara, Eliana, 2007. "Descent rules and strategic transfers. Evidence from matrilineal groups in Ghana," Journal of Development Economics, Elsevier, vol. 83(2), pages 280-301, July.
    10. Maria Porter, 2016. "Effects of microcredit and other loans on female empowerment in Bangladesh: the borrower's gender influences intra-household resource allocation," Agricultural Economics, International Association of Agricultural Economists, vol. 47(2), pages 235-245, March.
    11. Grogan, Louise, 2013. "Household formation rules, fertility and female labour supply: Evidence from post-communist countries," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 1167-1183.
    12. Kaushik Basu & Amanda J. Felkey, 2009. "A theory of efficiency wage with multiple unemployment equilibria: how a higher minimum wage law can curb unemployment," Oxford Economic Papers, Oxford University Press, vol. 61(3), pages 494-516, July.
    13. Qianqian Shang & Quanbao Jiang & Yongkun Yin, 2022. "How Does Children's Sex Affect Parental Sex Preference: Preference Adaptation and Learning," Working Papers wp2022_2202, CEMFI.
    14. Daichun Yi & Xiaoying Deng & Gang-Zhi Fan & Seow Eng Ong, 2018. "House Price and co-Residence with Older Parents: Evidence from China," The Journal of Real Estate Finance and Economics, Springer, vol. 57(3), pages 502-533, October.
    15. Liu, Haoming, 2008. "The impact of women's power on child quality in rural China," China Economic Review, Elsevier, vol. 19(1), pages 101-115, March.
    16. Sonia Bhalotra, 2004. "Parent Altruism, Cash Transfers and Child Poverty," Bristol Economics Discussion Papers 04/561, School of Economics, University of Bristol, UK.
    17. Sarmistha Pal, 2004. "Do Children Act As Old Age Security in Rural India? Evidence from an Analysis of Elderly Living Arrangements," Labor and Demography 0405002, University Library of Munich, Germany, revised 15 Oct 2004.
    18. Sarmistha Pal, 2006. "Elderly Health, Wealth and Co-residence with Adult Children in Rural India," CEDI Discussion Paper Series 06-09, Centre for Economic Development and Institutions(CEDI), Brunel University.
    19. Krislert Samphantharak & Scott Schuh & Robert M. Townsend, 2018. "Integrated Household Surveys: An Assessment Of U.S. Methods And An Innovation," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 50-80, January.
    20. Li, Lixing & Wu, Xiaoyu, 2019. "Housing price and intergenerational co-residence in urban China," Journal of Housing Economics, Elsevier, vol. 45(C), pages 1-1.
    21. Marcel Fafchamps & Agnes R. Quisumbing & IFPRI, 2006. "Household Formation and Marriage Markets," Economics Series Working Papers GPRG-WPS-039, University of Oxford, Department of Economics.
    22. Jonna P. ESTUDILLO & Agnes R. QUISUMBING & Keijiro OTSUKA, 2001. "Gender Differences In Wealth Transfer And Expenditure Allocation: Evidence From The Rural Philippines," The Developing Economies, Institute of Developing Economies, vol. 39(4), pages 366-394, December.
    23. Kochar, Anjini, 2014. "Intergenerational co-residence and schooling," The Journal of the Economics of Ageing, Elsevier, vol. 4(C), pages 8-23.
    24. Paul Glewwe & Nisha Agrawal & David Dollar, 2004. "Economic Growth, Poverty, and Household Welfare in Vietnam," World Bank Publications - Books, The World Bank Group, number 15010.
    25. Yasuyuki Sawada, 2003. "Income Risks, Gender, and Human Capital Investment in a Developing Country," CIRJE F-Series CIRJE-F-198, CIRJE, Faculty of Economics, University of Tokyo.

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