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Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive

Author

Listed:
  • Meliyanni Johar

    (University of Technology Sydney)

  • Shiko Maruyama

    (School of Economics, The University of New South Wales)

  • Sayaka Nakamura

    (Yokohama City University)

Abstract

The strategic bequest motive implies that children may want to live with their parents and provide care for them with the expectation of inheriting a larger portion of their bequest. This paper examines this hypothesis by focusing on the transition to coresidence by elderly Japanese parents and their children using underutilized Japanese panel data. Unlike previous studies, evidence for the bequest motive is generally tenuous. In addition, our use of a two-component mixture logit model identifies the minority group of families that follows the bequest motive and the majority group that does not.

Suggested Citation

  • Meliyanni Johar & Shiko Maruyama & Sayaka Nakamura, 2010. "Transition to Parent-Child Coresidence: Parental Needs and the Strategic Bequest Motive," Discussion Papers 2010-05, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2010-05
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2010-05.pdf
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    Citations

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    Cited by:

    1. Meliyanni Johar & Shiko Maruyama, 2011. "Intergenerational cohabitation in modern Indonesia: filial support and dependence," Health Economics, John Wiley & Sons, Ltd., vol. 20(S1), pages 87-104, September.
    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. Shiko Maruyama, 2012. "Inter Vivos Health Transfers: Final Days of Japanese Elderly Parents," Discussion Papers 2012-20, School of Economics, The University of New South Wales.
    4. Shinichiro Iwata & Keiko Tamada, 2014. "The backward-bending commute times of married women with household responsibility," Transportation, Springer, vol. 41(2), pages 251-278, March.
    5. Shinya Sugawara & Jiro Nakamura, 2013. "Is Elderly Care Socialized in Japan? Analyzing the Effects of the 2006 Amendment to the LTCI on the Female Labor Supply," CIRJE F-Series CIRJE-F-888, CIRJE, Faculty of Economics, University of Tokyo.

    More about this item

    Keywords

    informal care; intergenerational transfer; bequest motive; living arrangements; coresidence; finite mixture logit; health shock;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • I1 - Health, Education, and Welfare - - Health
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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