Working Paper: NBER ID: w28295
Authors: Jessamyn Schaller; Chase S. Eck
Abstract: We use an event-study approach to examine changes in intergenerational financial transfers and informal care within families following wealth loss, job exit, widowhood, and health shocks. We find sharp reductions in parental giving to adult children following negative shocks to parents' wealth and earned income, particularly in low-wealth households. Parental giving also decreases with some health shocks and increases following spousal death. Meanwhile, children of low-wealth households increase financial transfers to their parents following adverse shocks and children in both high- and low-wealth households increase their provision of informal care to parents following a wide range of adverse shocks.
Keywords: No keywords provided
JEL Codes: D10; D14; D15; D64; I10; J14; J26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Negative shocks to parental wealth and income (G59) | Parental financial transfers to adult children (G59) |
| Health shocks (I12) | Parental financial transfers to adult children (G59) |
| Spousal death (J12) | Parental financial transfers to adult children (G59) |
| Adverse shocks (E32) | Financial transfers from children to parents (D15) |
| Adverse shocks (E32) | Provision of informal care by children to parents (J13) |