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Upstream Intergenerational Transfers

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  • Sloan, Frank
  • Harold H. Zhang

Abstract

This study analyzes upstream intergenerational transfers from middle-ages children to their elderly parents. We formulate a model in which the middle-aged child transfers both money and time to an elderly parent, based on an altruistic motive. We test the altruistic assumption empirically and examine substitution between financial transfers and time transfers using data from the Health and Retirement Survey (HRS). Empirical results support the assumption that upstream transfers are motivated by altruism, particularly financial transfers. Poor parents receive more money. Overall, the results of time transfers provide less strong support for our model. A child with a high way tends to transfer money rather than time. Our findings on time transfers differ from predictions of models based on exchange motives. Public subsidies of nursing home care crowd out both private financial and time transfers.

Suggested Citation

  • Sloan, Frank & Harold H. Zhang, 1995. "Upstream Intergenerational Transfers," Working Papers 95-15, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:95-15
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    Cited by:

    1. Didem Bernard & Thomas Selden & Yuriy Pylypchuk, 2016. "The Distribution of Public Spending for Health Care in the United States on the Eve of Health Reform," NBER Chapters, in: Measuring and Modeling Health Care Costs, pages 459-474, National Bureau of Economic Research, Inc.
    2. Manon Domingues Dos Santos & François-Charles Wolff, 2010. "Pourquoi les immigrés portugais veulent-ils tant retourner au pays ?," Economie & Prévision, La Documentation Française, vol. 0(4), pages 1-14.
    3. Olena Nizalova, 2012. "The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study," Southern Economic Journal, John Wiley & Sons, vol. 79(2), pages 350-366, October.
    4. Jessamyn Schaller & Chase Eck, 2019. "Adverse Life Events and Intergenerational Transfers," Upjohn Working Papers 19-309, W.E. Upjohn Institute for Employment Research.
    5. Lefebvre, Mathieu & Pestieau, Pierre & Schoenmaeckers, Jérôme, 2024. "Grandchild care and eldercare. A quid pro quo arrangement," LIDAM Discussion Papers CORE 2024014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Edwin Van Gameren & Durfari Velandia Naranjo, 2012. "Working and caring. The simultaneous decision of labor force participation, informal long-term care and childcare services in Mexico," Serie documentos de trabajo del Centro de Estudios Económicos 2012-16, El Colegio de México, Centro de Estudios Económicos.
    7. 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).
    8. Tamai, Toshiki, 2023. "The rate of discount on public investments with future bias in an altruistic overlapping generations model," European Journal of Political Economy, Elsevier, vol. 79(C).
    9. Pascal Belan & Pierre-Jean Messe & François-Charles Wolff, 2010. "Postponing retirement age and labor force participation: the role of family transfers," Recherches économiques de Louvain, De Boeck Université, vol. 76(4), pages 347-370.
    10. Jinkook Lee & Hyungsoo Kim, 2008. "A longitudinal analysis of the impact of health shocks on the wealth of elders," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(1), pages 217-230, January.

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    More about this item

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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