Informal Care and Inter-Vivos Transfers: Results from the National Longitudinal Survey of Mature Women

36 Pages Posted: 5 Apr 2013 Last revised: 12 Jun 2021

See all articles by Edward C. Norton

Edward C. Norton

University of Michigan at Ann Arbor

Lauren Hersch Nicholas

University of Michigan at Ann Arbor - Institute for Social Research (ISR)

Sean Shenghsiu Huang

Georgetown University

Date Written: April 2013

Abstract

Informal care is the largest source of long-term care for elderly, surpassing home health care and nursing home care. By definition, informal care is unpaid. It remains a puzzle why so many adult children give freely of their time. Transfers of time to the older generation may be balanced by financial transfers going to the younger generation. This leads to the question of whether informal care and inter-vivos transfers are causally related. We analyze data from the 1999 and 2003 waves of National Longitudinal Survey of Mature Women. We examine whether the elderly parents give more inter-vivos monetary transfers to adult children who provide informal care, by examining both the extensive and intensive margins of financial transfers and of informal care. We find statistically significant results that a child who provides informal care is more likely to receive inter-vivos transfers than a sibling who does not. If a child does provide care, there is no statistically significant effect on the amount of the transfer.

Suggested Citation

Norton, Edward C. and Nicholas, Lauren Hersch and Huang, Sean Shenghsiu, Informal Care and Inter-Vivos Transfers: Results from the National Longitudinal Survey of Mature Women (April 2013). NBER Working Paper No. w18948, Available at SSRN: https://ssrn.com/abstract=2245455

Edward C. Norton (Contact Author)

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Lauren Hersch Nicholas

University of Michigan at Ann Arbor - Institute for Social Research (ISR) ( email )

Ann Arbor, MI 48106-1248
United States

HOME PAGE: http://www.psc.isr.umich.edu/people/profile/792/Lauren_Nicholas

Sean Shenghsiu Huang

Georgetown University ( email )

Washington, DC 20057
United States

HOME PAGE: http://seanhuang.org

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