The Betrayed Generation? Intra-Household Transfers and Retirement Behavior in South Korea

37 Pages Posted: 8 Oct 2018

See all articles by Kyeongkuk Kim

Kyeongkuk Kim

University of Hawaii at Manoa

Sang-Hyop Lee

University of Hawaii - Department of Economics

Timothy Halliday

University of Hawaii - Department of Economics; IZA Institute of Labor Economics

Abstract

We consider the nexus of intra-household transfers, the sex composition of the sibship, and parental retirement behavior in Korea. We provide evidence that the cost of raising sons is higher than it is for daughters in Korea. Thus, in the absence of sufficient transfers from adult sons to parents, parents will fund their earlier investments in their sons by increasing their labor supply. Consistent with this, we show that parents with more adult sons delay their retirement. In particular, an elderly parent with all sons has a retirement probability that is 7–10 percentage points lower than a comparable parent with all daughters. Elderly parents also work between 1.8 and 2.7 hours more per week when their sibship consists of all sons. These effects are the most pronounced when the first born is a son, as well as for poorer households.

Keywords: retirement, intra-household transfers, gender, sex ratios

JEL Classification: J1, J13, J16, J26

Suggested Citation

Kim, Kyeongkuk and Lee, Sang-Hyop and Halliday, Timothy, The Betrayed Generation? Intra-Household Transfers and Retirement Behavior in South Korea. IZA Discussion Paper No. 11846, Available at SSRN: https://ssrn.com/abstract=3261705

Kyeongkuk Kim (Contact Author)

University of Hawaii at Manoa

2500 Campus Road
Honolulu, HI 96822
United States

Sang-Hyop Lee

University of Hawaii - Department of Economics ( email )

2424 Maile Way, SSB 542
Honolulu, HI 96822
United States
808-956-8590 (Phone)

Timothy Halliday

University of Hawaii - Department of Economics ( email )

Honolulu, HI 96822
United States

IZA Institute of Labor Economics

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

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