No Free Lunch, Buddy: Past Housing Transfers and Informal Care Later in Life

55 Pages Posted: 25 Aug 2017

See all articles by Emanuele Ciani

Emanuele Ciani

Bank of Italy

Claudio Deiana

Joint Research Center of the European Commission

Multiple version iconThere are 2 versions of this paper

Date Written: June 16, 2017

Abstract

Previous empirical literature on the relationship between intergenerational transfers of assets and services has mostly focused on contemporary exchanges. In contrast, we provide novel evidence that parents who helped their adult children in the past are rewarded by a greater likelihood of receiving informal care later in life. To this end we use Italian data to look at retrospective information about how parents help their children to purchase houses when they get married. Our estimates show a positive association with the current provision of informal care, which is robust to controlling for a large set of individual and family characteristics. We provide evidence that this can be explained by various self-interest motives, relating to theories based either on bilateral exchange or on the presence of a third generation of grandchildren, such as those including a demonstration effect or the concept of a family constitution.

Keywords: informal care, housing, intergenerational transfers, geographical proximity

JEL Classification: D10, J13, J14

Suggested Citation

Ciani, Emanuele and Deiana, Claudio, No Free Lunch, Buddy: Past Housing Transfers and Informal Care Later in Life (June 16, 2017). Bank of Italy Temi di Discussione (Working Paper) No. 1117, Available at SSRN: https://ssrn.com/abstract=3025471 or http://dx.doi.org/10.2139/ssrn.3025471

Emanuele Ciani (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Claudio Deiana

Joint Research Center of the European Commission ( email )

Via E. Fermi 2749
1049
Belgium

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