Monetary Transfers from Children and the Labour Supply of Elderly Parents: Evidence from Vietnam

Ha Nguyen, Amy Liu and Alison Booth

No 6974, IZA Discussion Papers from IZA Network @ LISER

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: endogenous variable; inter-generational transfers; labour supply; old-age support; maximum likelihood (search for similar items in EconPapers)
JEL-codes: J14 J22 J26 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-10
New Economics Papers: this item is included in nep-age, nep-dem, nep-dev and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - published in: Journal of Development Studies, 2012, 48 (8), 1177–1191

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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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