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Parent-Child Co-residence and Bequest Motives in China

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  • Ting Yin

    (Institute of Social and Economic Research, Osaka University)

Abstract

In this paper, I discuss the actual conditions and the determinants of co-residence between older parents and their children in China, especially the impact of bequest motives on parent-child co-residence, using micro data from the gSurvey of Living Preferences and Satisfaction, h conducted at Osaka University. More specifically, I use three subsamples of older respondents (those who live in urban areas, those who live in rural areas, and the pooled sample of both) to analyze the impact of bequest motives and other factors on the probability of parent-child co-residence. The results are as follows: Bequest motives are strong in China, with more than 60 percent of respondents having a bequest motive, and the parent-child co-residence rate is also high (just under 60 percent). Bequest motives do not have a significant impact on the probability of parent-child co-residence in any of the three samples. However, in urban areas of China, if older parents own their own homes, the probability that they co-reside with their children increases as the value of their home increases. In rural areas of China and in the country as a whole, the coefficient of parental income is positive and significant in some cases, meaning that children are more likely to live with their parents if parental income is higher. All of these results suggest that, in both urban and rural areas of China, the Chinese are selfishly motivated and the life-cycle model applies.

Suggested Citation

  • Ting Yin, 2009. "Parent-Child Co-residence and Bequest Motives in China," Discussion Papers in Economics and Business 09-26, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:0926
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    References listed on IDEAS

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    Cited by:

    1. Yang, Xintong & Gan, Li, 2020. "Bequest motive, household portfolio choice, and wealth inequality in urban China," China Economic Review, Elsevier, vol. 60(C).
    2. Yukutake, Norifumi & Iwata, Shinichiro & Idee, Takako, 2015. "Strategic interaction between inter vivos gifts and housing acquisition," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 62-77.
    3. Ting Yin, 2011. "The gWill h to Save in China," Discussion Papers in Economics and Business 11-24, Osaka University, Graduate School of Economics.
    4. Fengming Chen & Hiroshi Yoshida, 2016. "Number of Children and Living Arrangements of the Elderly in China," TERG Discussion Papers 352, Graduate School of Economics and Management, Tohoku University.
    5. 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.
    6. Iwata, Shinichiro & Yukutake, Norifumi, 2013. "Housing subsidy or parental support: Crowding-out effect of mortgage tax deduction," MPRA Paper 46647, University Library of Munich, Germany.
    7. Chong, Shyue Chuan & Alma’amun, Suhaili & Sia, Bik Kai, 2015. "Bequest Motives among Older Malays in Selangor," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 49(2), pages 17-26.

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    More about this item

    Keywords

    Bequest motives; parent-child co-residence; life-cycle hypothesis; altruism model; strategic bequest motive.;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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