Why Do Children Take Care of Their Elderly Parents? Are the Japanese Any Different?

36 Pages Posted: 10 May 2016

See all articles by Charles Yuji Horioka

Charles Yuji Horioka

Kobe University; National Bureau of Economic Research; Asian Growth Research Institute; Osaka University

Emin Gahramanov

American University of Sharjah - Department of Economics

Aziz Hayat

Deakin University - School of Accounting, Economics and Finance

Xueli Tang

Deakin University

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Date Written: May 7, 2016

Abstract

In this paper, we conduct a theoretical analysis of why individuals provide care and attention to their elderly parents using a two-period overlapping generations model with endogenous saving and a “contest success function” and test this model using micro data from a Japanese household survey, the Osaka University Preference Parameter Study. To summarize our main findings, we find that the Japanese are more likely to live with (or near) their elderly parents and/or to provide care and attention to them if they expect to receive a bequest from them, which constitutes strong support for the selfish bequest motive or the exchange motive (much stronger than in the United States), but we find that their caregiving behavior is also heavily influenced by the strength of their altruism toward their parents and social norms.

Keywords: Altruism, attention, bequest motive, care, caregiving, contest success function, co-residence, elderly care, exchange motive, informal care, intergenerational transfers, Japan, parental care, parent-child relations, selfishness, social norms, strategic bequest motive

JEL Classification: D12, D64, D91, E21, J14

Suggested Citation

Horioka, Charles Yuji and Gahramanov, Emin and Hayat, Aziz and Tang, Xueli, Why Do Children Take Care of Their Elderly Parents? Are the Japanese Any Different? (May 7, 2016). ISER Discussion Paper No. 970, Available at SSRN: https://ssrn.com/abstract=2777286 or http://dx.doi.org/10.2139/ssrn.2777286

Charles Yuji Horioka (Contact Author)

Kobe University ( email )

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HOME PAGE: http://www.rieb.kobe-u.ac.jp

National Bureau of Economic Research ( email )

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Asian Growth Research Institute ( email )

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Osaka University ( email )

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Japan

HOME PAGE: http://www.rieb.kobe-u.ac.jp

Emin Gahramanov

American University of Sharjah - Department of Economics ( email )

PO Box 26666
Sharjah
United Arab Emirates

Aziz Hayat

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

Xueli Tang

Deakin University ( email )

75 Pigdons Road
Victoria, Victoria 3216
Australia

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