Journal of Family and Economic Issues

, Volume 36, Issue 2, pp 192–209

Reciprocity in the Formation of Intergenerational Coresidence

Original Paper

Abstract

Children play a key role in supporting elderly parents, and the literature has consistently found reciprocity whereby parents compensate their children for providing care and attention. To understand how the mode of compensation is related to the characteristics of parents and children, we studied the determinants of transitions to parent–child coresidence in Japan. The results conformed to the hypothesis that the mode of reciprocity depends on the costs and benefits of coresidence for each family member. Parental assets and care needs were associated with coresidence. Additionally, transitions to coresidence with married parents were characterized by young, unmarried children and the presence of parental housing assets, whereas transitions to coresidence with widowed mothers were characterized by mothers’ non-housing assets.

Keywords

Transition analysis Latent class model Informal care Parent–child coresidence Aged care 

References

  1. Ando, A., Yamashita, M., & Murayama, J. (1986). Analysis of consumption and saving based on the lifecycle hypothesis. Economic Analysis, 101, 25–114. (in Japanese).Google Scholar
  2. Bernheim, B. D., Shleifer, A., & Summers, L. H. (1985). The strategic bequest motive. Journal of Political Economy, 93(6), 1045–1076. doi:10.1086/261351.CrossRefGoogle Scholar
  3. Brandon, P. D. (2012). The rise of three-generation households among households headed by two parents and mothers only in Australia. Journal of Family and Economic Issues, 33(3), 376–388. doi:10.1007/s10834-012-9284-5.CrossRefGoogle Scholar
  4. Brown, M. (2007). End-of-life transfers and the decision to care for a parent (unpublished manuscript).Google Scholar
  5. Brown, J. W., Lianga, J., Krausea, N., Akiyama, H., Sugisawa, H., & Fukaya, T. (2002). Transitions in living arrangements among elders in Japan: Does health make a difference? Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 57(4), 209–220. doi:10.1093/geronb/57.4.S209.CrossRefGoogle Scholar
  6. Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: Methods and applications. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  7. Carmichael, F., Charles, S., & Hulme, C. (2010). Who will care? Employment participation and willingness to supply informal care. Journal of Health Economics, 29(1), 182–190. doi:10.1016/j.jhealeco.2009.11.003.CrossRefGoogle Scholar
  8. Chan, A. (2005). Aging in Southeast and East Asia: Issues and policy directions. Journal of Cross Cultural Gerontology, 20(4), 269–284. doi:10.1007/s10823-006-9006-2.CrossRefGoogle Scholar
  9. Cox, D. (1987). Motives for private income transfers. Journal of Political Economy, 95(3), 508–546. doi:10.1086/261470.CrossRefGoogle Scholar
  10. Dodge, H. H., Kadowaki, T., Hayakawa, T., Yamakawa, M., Sekikawa, A., & Ueshima, H. (2005). Cognitive impairment as a strong predictor of incident disability in specific ADL-IADL tasks among community-dwelling elders: The Azuchi study. The Gerontologist, 45(2), 222–230. doi:10.1093/geront/45.2.222.CrossRefGoogle Scholar
  11. Dostie, B., & Léger, P. T. (2005). The living arrangement dynamics of sick, elderly individuals. Journal of Human Resources, 40(4), 989–1014. doi:10.3368/jhr.XL.4.989.Google Scholar
  12. Endo, H., & Yoshida, A. (2001). Family decision on coresidence and demand for formal care services. Quarterly Journal of Social Security Research, 37(3), 281–296 (in Japanese). http://www.ipss.go.jp/syoushika/bunken/data/pdf/15690409.pdf.Google Scholar
  13. Fast, J. E., Williamson, D. L., & Keating, N. C. (1999). The hidden costs of informal elderly care. Journal of Family and Economic Issues, 20(3), 301–326. doi:10.1023/A:1022909510229.CrossRefGoogle Scholar
  14. Hall, J., Kenny, P., & Hossain, I. (2007). The provision of informal care in terminal illness: An analysis of carers’ needs using a discrete choice experiment. CHERE working paper 2007/12, University of Technology Sydney. http://www.chere.uts.edu.au/pdf/wp2007_12.pdf.
  15. Hanaoka, C., & Norton, E. C. (2008). Informal and formal care for elderly persons: How adult children’s characteristics affect the use of formal care in Japan. Social Science and Medicine, 67(6), 1002–1008. doi:10.1016/j.socscimed.2008.05.006.CrossRefGoogle Scholar
  16. Hays, J. C., Pieper, C. F., & Purser, J. L. (2003). Competing risk of household expansion or institutionalization in late life. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 58(1), S11–S20. doi:10.1093/geronb/58.1.S11.CrossRefGoogle Scholar
  17. Heckman, J. J., & Singer, B. (1984). A method for minimizing the impact of distributional assumptions in econometric models for duration data. Econometrica, 52(2), 271–320. doi:10.2307/1911491.CrossRefGoogle Scholar
  18. Henretta, J. C., Hill, M. S., Li, W., Soldo, B. J., & Wolf, D. A. (1997). Selection of children to provide care: The effect of earlier parental transfers. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 52B, S110–S119. doi:10.1093/geronb/52B.Special_Issue.110.CrossRefGoogle Scholar
  19. Horioka, C. Y. (2002). Are the Japanese selfish, altruistic or dynastic? Japanese Economic Review, 53(1), 26–54. doi:10.1111/1468-5876.00212.CrossRefGoogle Scholar
  20. Iwamoto, Y., & Fukui, T. (2001). The effect of income on intergenerational coresidence. JCER Economic Journal, 42, 21–43 (in Japanese). http://www.jcer.or.jp/academic_journal/jer/PDF/42-2.pdf.
  21. Johar, M., & Maruyama, S. (2011). Intergenerational cohabitation in modern Indonesia: Filial support and dependence. Health Economics, 20(S1), 87–104. doi:10.1002/hec.1708.CrossRefGoogle Scholar
  22. Johar, M., & Maruyama, S. (2013). Does coresidence improve an elderly parent’s health? Journal of Applied Econometrics. doi:10.1002/jae.2339.
  23. Kim, Y. (2004). What makes family members live apart or together? An empirical study with Japanese panel study of consumers. The Kyoto Economic Review, 73(2), 121–139. http://repository.kulib.kyoto-u.ac.jp/dspace/bitstream/2433/24836/1/73.121.pdf.
  24. Koh, S. K., & MacDonald, M. (2006). Financial reciprocity and elder care: Interdependent resource transfers. Journal of Family and Economic Issues, 27(3), 420–436. doi:10.1007/s10834-006-9028-5.CrossRefGoogle Scholar
  25. Konrad, K. A., Kunemund, H., Lommerud, K. E., & Robledo, J. R. (2002). Geography of the family. American Economic Review, 92(4), 981–998. doi:10.1257/00028280260344551.CrossRefGoogle Scholar
  26. Kureishi, W., & Wakabayashi, M. (2009). One’s own parents and one’s spousal parents: A question of strategic bequest motives (unpublished manuscript). http://iussp2009.princeton.edu/papers/91391.
  27. Maruyama, S. (2012). Inter vivos health transfers: Final days of Japanese elderly parents. UNSW Australian School of Business Research Paper, No. 2012 ECON 20, University of New South Wales.Google Scholar
  28. Maruyama, S., & Johar, M. (2013). Do siblings free-ride in ‘being there’ for parents? UNSW Australian School of Business Research Paper, No. 2013 ECON 06, University of New South Wales.Google Scholar
  29. Michael, Y. L., Berkman, L. F., Colditz, G. A., & Kawachi, I. (2001). Living arrangements, social integration, and change in functional health status. American Journal of Epidemiology, 153(22), 123–131. doi:10.1093/aje/153.2.123.CrossRefGoogle Scholar
  30. Ministry of Health, Labour and Welfare. (2008). Report on the comprehensive survey of living conditions of the people on health and welfare (in Japanese). http://www.mhlw.go.jp/toukei/list/20-19-1.html.
  31. Nakamura, S., & Maruyama, S. (2012). Intergenerational transfers from children to parents. Economic Analysis, 63(4), 318–332 (in Japanese). http://www.ier.hit-u.ac.jp/Japanese/publication/ER/.
  32. Nishioka, H. (2000). Parent–adult child relationship in Japan: Determinants of parent–adult child coresidence. Journal of Population Problems, 56(3), 34–55 (in Japanese). http://websv.ipss.go.jp/syoushika/bunken/data/pdf/15441102.pdf.Google Scholar
  33. Norton, E. C., & Van Houtven, C. H. (2006). Inter-vivos transfers and exchange. Southern Economic Journal, 73(1), 157–172. doi:10.2307/20111880.CrossRefGoogle Scholar
  34. OECD. (2005). The OECD health project: Long-term care for older people. Paris: OECD.CrossRefGoogle Scholar
  35. Perozek, M. G. (1998). A reexamination of the strategic bequest motive. Journal of Political Economy, 106(2), 423–445. doi:10.1086/250015.CrossRefGoogle Scholar
  36. Pezzin, L. E., & Schone, B. S. (1999). Intergenerational household formation, female labor supply and informal caregiving: A bargaining approach. Journal of Human Resources, 34(3), 475–503. doi:10.2307/146377.CrossRefGoogle Scholar
  37. Pinquart, M. (2001). Correlates of subjective health in older adults: A meta analysis. Psychology and Aging, 16(3), 414–426. doi:10.1037/0882-7974.16.3.414.CrossRefGoogle Scholar
  38. Sakamoto, K. (2006). Factors affecting coresidence with parents and the effect of coresidence. Japanese Journal of Research on Household Economics, 72, 21–30 (in Japanese). http://dl.dropboxusercontent.com/u/88984691/journal/jjrhe/pdf/72/072_04.pdf.
  39. Sarwari, A. R., Fredman, L., Langenberg, P., & Magaziner, J. (1998). Prospective study on the relation between living arrangement and change in functional health status of elderly women. American Journal of Epidemiology, 147(4), 370–378. doi:10.1093/oxfordjournals.aje.a009459.CrossRefGoogle Scholar
  40. Sloan, F. A., Picone, G., & Hoerger, T. J. (1997). The supply of children’s time to disabled elderly parents. Economic Inquiry, 35(2), 295–308. doi:10.1111/j.1465-7295.1997.tb01911.x.CrossRefGoogle Scholar
  41. Sloan, F. A., Zhang, H. H., & Wang, J. (2002). Upstream intergenerational transfers. Southern Economic Journal, 69(2), 363–380. doi:10.2307/1061677.CrossRefGoogle Scholar
  42. Tabuchi, R. (2008). Parental housing assistance as a determinant of parent-child proximity in Japan: Results from the JGSS-2006. Japanese General Social Surveys Research Series, 7, 13–23 (in Japanese). http://jgss.daishodai.ac.jp/research/monographs/jgssm7/jgssm7_02.pdf.
  43. Takagi, E., & Silverstein, M. (2011). Purchasing piety? Coresidence of married children with their older parents in Japan. Demography, 48(4), 1559–1579. doi:10.1007/s13524-011-0053-0.CrossRefGoogle Scholar
  44. Takagi, E., Silverstein, M., & Crimmins, E. (2007). Intergenerational coresidence of older adults in Japan: Conditions for cultural plasticity. The Journals of Gerontology Series B: Psychological Sciences and Social Sciences, 62(5), 330–339. doi:10.1093/geronb/62.5.S330.CrossRefGoogle Scholar
  45. Tamiya, N., Noguchi, H., Nishi, A., Reich, M. R., Ikegami, N., Hashimoto, H., et al. (2011). Population ageing and wellbeing: Lessons from Japan’s Long-Term Care Insurance. Lancet, 378(9797), 1183–1192. doi:10.1016/S0140-6736(11)61176-8.CrossRefGoogle Scholar
  46. Wakabayashi, M., & Horioka, C. Y. (2009). Is the eldest son different? The residential choice of siblings in Japan. Japan and the World Economy, 21(4), 337–348. doi:10.1016/j.japwor.2009.04.001.CrossRefGoogle Scholar
  47. Wolff, F. (2001). Private intergenerational contact in France and the demonstration effect. Applied Economics, 33(2), 143–153. doi:10.1080/00036840122181.CrossRefGoogle Scholar
  48. World Health Organization. (2007). Women, ageing and health: A framework for action. Canada: WHO.Google Scholar
  49. Yamada, K. (2006). Intra-family transfers in Japan: Intergenerational co-residence, distance, and contact. Applied Economics, 36(16), 1839–1861. doi:10.1080/00036840600825746.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2014

Authors and Affiliations

  • Meliyanni Johar
    • 1
  • Shiko Maruyama
    • 1
  • Sayaka Nakamura
    • 2
  1. 1.Economics Discipline GroupUniversity of Technology SydneySydneyAustralia
  2. 2.School of EconomicsNagoya UniversityNagoyaJapan

Personalised recommendations