Access to Pensions, Old-Age Support, and Child Investment in the People’s Republic of China

Xiaoyue Shan () and Albert Park ()
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Xiaoyue Shan: University of Pennsylvania
Albert Park: Asian Development Bank

No 682, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This paper studies how access to public pensions affects old-age support and child investment in traditional societies. Guided by predictions from an overlapping generations model, we analyze the influences of a new pension program in rural People’s Republic of China, using a difference-in-differences approach. We find that the program crowds out transfers from working-age adults, especially men, to their elderly parents. Interestingly, the impact on child investment significantly differs by child gender. While adult parents increase educational investment in sons, their investment in daughters appears to decrease. Our findings highlight the unintended consequences of public pensions on parental investment.

Keywords: altruism; pension; old-age support; rural PRC; intergenerational transfers (search for similar items in EconPapers)
JEL-codes: D64 H55 J14 J16 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2023-05-12
New Economics Papers: this item is included in nep-age, nep-cna and nep-dge
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0682

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