Working Paper: NBER ID: w3363
Authors: Axel Boersch-Supan; Jagadeesh Gokhale; Laurence J. Kotlikoff; John Morris
Abstract: This paper uses matched data on the elderly and their children to study the provision of time by children to the elderly. It develops a Tobit model as well as a structural model to analyze the determinants of this decision. The main determinants of the amount of time given to parents appear to be the parent's age, reported health, and institutionalization status, and the children's age, health, and sex. Older parents, less healthy parents, and non-institutionalized parents receive more time from their children, while younger children, healthier children, and female children provide more time. In contrast to these demographic determinants, economic variables, such as children's wage rate and income levels, appear to play a rather insignificant role in the provision of time. In addition, the evidence does not support the hypothesis that parents purchase time from their children.
Keywords: Elderly Care; Family Support; Time Provision; Altruism
JEL Codes: I12; J14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Parents purchasing time from children (D15) | Altruism in interactions (D64) |
| Children's wage rates (J38) | Opportunity cost of providing time (J22) |
| Children's income levels (J13) | Provision of time (C41) |
| Older parents (J12) | More time from children (J13) |
| Less healthy parents (I12) | More time from children (J13) |
| Non-institutionalized parents (J12) | More time from children (J13) |
| Younger children (J13) | More time to parents (J22) |
| Healthier children (I19) | More time to parents (J22) |
| Female children (J13) | More time to parents (J22) |