Patterns and Correlates of Intergenerational Non-Time Transfers: Evidence from Charls

31 Pages Posted: 20 Apr 2016

See all articles by Xiaoyan Lei

Xiaoyan Lei

Peking University - CCER

John Giles

World Bank; IZA Institute of Labor Economics; World Bank - Development Research Group (DECRG)

Yuqing Hu

affiliation not provided to SSRN

Albert Park

affiliation not provided to SSRN

John Strauss

University of Southern California - Department of Economics

Yaohui Zhao

Peking University

Date Written: June 1, 2012

Abstract

Using the China Health and Retirement Longitudinal Study 2008 pilot, this paper analyzes the patterns and correlates of intergenerational transfers between elderly parents and adult children in Zhejiang and Gansu Provinces. The pilot is a unique data source from China that provides information on the direction as well as amount of transfers between parents and each of their children, and clearly distinguishes transfers between parents and children from those among other relatives or friends. The paper shows that transfers flow predominantly from children to elderly parents, with transfers from children playing an important role in elderly support. Taking advantage of the rich information available in this survey, the authors find strong evidence that transfers are significantly affected by the financial capabilities of individual children. Educated and married children have a higher tendency to provide transfers to their parents; and oldest sons are less likely to provide transfers than their younger brothers. With future continued rapid economic growth in China, the income disadvantage of the elderly will persist and upward generational transfers will likely remain the most common form of private transfers. In the absence of some other source of elderly support (such as a public pension or own savings), the dwindling number of children implies that the financial burden associated with supporting the elderly is likely to increase.

Keywords: Health Monitoring & Evaluation, Youth and Governance, Rural Poverty Reduction, Labor Policies, Population & Development

Suggested Citation

Lei, Xiaoyan and Giles, John and Hu, Yuqing and Park, Albert and Strauss, John and Zhao, Yaohui, Patterns and Correlates of Intergenerational Non-Time Transfers: Evidence from Charls (June 1, 2012). World Bank Policy Research Working Paper No. 6076. Available at SSRN: https://ssrn.com/abstract=2079413

Xiaoyan Lei (Contact Author)

Peking University - CCER ( email )

No. 38 Xueyuan Road
Haidian District
Beijing, Beijing 100871
China

John Giles

World Bank ( email )

Washington DC
United States

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Yuqing Hu

affiliation not provided to SSRN

Albert Park

affiliation not provided to SSRN

John Strauss

University of Southern California - Department of Economics ( email )

306A Kaprielian Hall
Los Angeles, CA 90089
United States

Yaohui Zhao

Peking University ( email )

Department of Economics
Beijing 100871
China

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