Asset or burden? Impact of children on parents’ retirement

Su Yeon Jeong and Jinyoung Kim

Journal of Asian Economics, 2020, vol. 71, issue C

Abstract: If parents receive financial support in retirement from their children, having more children with higher earning power may expedite their retirement. On the other hand, retirement may be delayed if parents are burdened with educational expenses for children. We empirically investigate how the quantity and the education of children influence their parents’ retirement decisions. Due to the endogeneity of childrearing in the retirement decision, we employ the instrumental variable method with twin births and child deaths as instruments. We find that parents retire earlier when they have more children and better educated children and they receive a significant amount of transfers from children.

Keywords: Retirement; Quantity and quality of children; Old-age support (search for similar items in EconPapers)
JEL-codes: D14 D64 J14 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:asieco:v:71:y:2020:i:c:s1049007820301317

DOI: 10.1016/j.asieco.2020.101251

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