Monetary transfers from children and the labour supply of elderly parents: evidence from Vietnam

Ha Trong Nguyen, Amy Y.C. Liu () and Alison Lee Booth ()

No 664, CEPR Discussion Papers from Centre for Economic Policy Research, Research School of Economics, Australian National University

Abstract: In the absence of a broad-based pension scheme, the elderly in developing countries may rely on monetary transfers made by their children and on their own labour supply. This paper examines whether monetary transfers from children help to reduce elderly parents’ need to work. Taking the possible endogeneity of children’s transfers in the parents’ labour supply into account and using maximum likelihood methods and Vietnamese data, we find that monetary transfers help the elderly cope with risks associated with old age or illness. At the same time, however, monetary transfers are not sufficient to fully substitute for parents’ labour supply.

Keywords: old-age support; labour supply; inter-generational transfers; endogenous variable; maximum likelihood (search for similar items in EconPapers)
JEL-codes: J14 J22 J26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dem, nep-lab and nep-sea
Date: 2012-07
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http://cbe.anu.edu.au/research/papers/ceprdpapers/DP664.pdf (application/pdf)

Related works:
Journal Article: Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam (2012)
Working Paper: Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam (2012)
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Persistent link: http://EconPapers.repec.org/RePEc:auu:dpaper:664

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