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Journal of Population Economics

, Volume 21, Issue 4, pp 1007–1033 | Cite as

Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?

  • Lisa A. Cameron
  • Deborah Cobb-ClarkEmail author
OriginalPaper

Abstract

Do elderly parents use coresidence with or financial transfers from children to reduce their own labour supply in old age? This paper is one of only a few studies that seeks to formally model elderly labour supply in the context of a developing country while taking into account coresidency with and financial transfers from children. We find little evidence that support from children—either through transfers or coresidency—substitutes for elderly parents’ need to work. Thus, as in developed countries, there is a role for public policy to enhance the welfare of the elderly population.

Keywords

Intergenerational transfers Old-age support Elderly labour supply 

JEL Classification

J226 J22 J14 

Notes

Acknowledgements

We thank Patricia Apps, Robert Breunig, Denise Doiron, Mardi Dungey, Thomas Crossley, Bo Honore, Cordelia Reimers and two anonymous referees for helpful comments. This research was funded by Australian Research Council grant no. S79813009.

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Copyright information

© Springer-Verlag 2006

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of MelbourneMelbourneAustralia
  2. 2.Social Policy Evaluation, Analysis and Research Centre, and Economics Program, Research School of Social SciencesAustralian National UniversityCanberraAustralia
  3. 3.Institute for Labor Studies (IZA)BonnGermany

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