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

55 Pages Posted: 5 Apr 2019

See all articles by Emanuele Ciani

Emanuele Ciani

Bank of Italy

Claudio Deiana

University of Cagliari - Department of Economics; University of Essex - Department of Economics; Universita di Cagliari - Centre for North South Economic Research (CRENOS)

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Date Written: June 2017

Abstract

Previous empirical literature on the relation between intergenerational transfer of assets and services has mostly focused on contemporary exchanges. By contrast, we provide novel evidence showing that parents who helped their adult children in the past are rewarded by higher chances of receiving informal care later in life. To this end we use Italian data containing precise retrospective information about the help with housing that couples received from their parents when they got married, such as a real estate donation or down payment. Our estimates show that this type of past help is positively associated with the current provision of informal care to the parents. This result is robust to controlling for a large set of individual and family characteristics and is only partially due to increased geographical proximity. We suggest that this finding can be explained by mixed self-interest motives, related to theories based on either bilateral exchange or the presence of a third generation (grandchildren), such as the demonstration effect model or the family constitution model.

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

Suggested Citation

Ciani, Emanuele and Deiana, Claudio, No Free Lunch, Buddy: Past Housing Transfers and Informal Care Later in Life (June 2017). Bank of Italy Temi di Discussione (Working Paper), Available at SSRN: https://ssrn.com/abstract=3353182 or http://dx.doi.org/10.2139/ssrn.3353182

Emanuele Ciani

Bank of Italy ( email )

Via Nazionale 91
Rome, 00184
Italy

Claudio Deiana (Contact Author)

University of Cagliari - Department of Economics ( email )

Cagliari, 09124
Italy

University of Essex - Department of Economics ( email )

Wivenhoe Park
Colchester, CO4 3SQ
United Kingdom

Universita di Cagliari - Centre for North South Economic Research (CRENOS) ( email )

V. S. Ignazio 78
Cagliari, 09124
ITALY

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