Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam

31 Pages Posted: 11 Nov 2012

See all articles by Ha Trong Nguyen

Ha Trong Nguyen

Research School of Economics - Australian National University (ANU)

Amy Y.C. Liu

Crawford School of Public Policy

Alison L. Booth

Australian National University (ANU) - Research School of Social Sciences (RSSS); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Abstract

In the absence of a broad-based pension scheme, the elderly in developing countries may rely on monetary transfers made by their children and on their own labour supply. This paper examines whether monetary transfers from children help to reduce elderly parents' need to work. Taking the possible endogeneity of children's transfers in the parents' labour supply into account and using maximum likelihood methods and Vietnamese data, we find that monetary transfers help the elderly cope with risks associated with old age or illness. At the same time, however, monetary transfers are not sufficient to fully substitute for parents' labour supply.

Keywords: old-age support, labour supply, inter-generational transfers, endogenous variable, maximum likelihood

JEL Classification: J14, J22, J26

Suggested Citation

Nguyen, Ha Trong and Liu, Amy Y.C. and Booth, Alison L., Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam. IZA Discussion Paper No. 6974, Available at SSRN: https://ssrn.com/abstract=2173664

Ha Trong Nguyen (Contact Author)

Research School of Economics - Australian National University (ANU) ( email )

Economics
Building 9 - ANU
Canberra, ACT 0200
Australia

HOME PAGE: http://rse.anu.edu.au/

Amy Y.C. Liu

Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
Canberra, Australian Capital Territory 0200
Australia
61-2-6125 0177 (Phone)

HOME PAGE: http://crawford.anu.edu.au/crawford_people/content/staff/aliu.php

Alison L. Booth

Australian National University (ANU) - Research School of Social Sciences (RSSS) ( email )

Canberra, Australian Capital Territory 0200
Australia
+61 2 6125 3285 (Phone)
+61 2 6125 0182 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
16
Abstract Views
350
PlumX Metrics