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Can I live with you after I retire? Retirement, old age support, and internal migration of older adults in China

Simiao Chen (), Zhangfeng Jin () and Klaus Prettner ()

No 303, Department of Economics Working Paper Series from WU Vienna University of Economics and Business

Abstract: This study examines the causal impact of retirement on migration decisions. Using a regression discontinuity (RD) design approach, combined with a nationally representative sample of 228,855 Chinese older adults, we find that retirement increases the probability of migration by 12.9 p.p. (an 80% increase in migration). Approximately 38% of the total migration effects can be attributed to inter-temporal substitution. Retirement-induced migrants are lower-educated, have restricted access to social security, and come from origins with high living costs. Relying on old age support from adult children in migration is a likely mechanism. These findings are consistent with a simple theoretical model of migration for older adults.

Keywords: Retirement; Internal migration; Old age support; China; Regression discontinuity design (search for similar items in EconPapers)
Date: 2020-10
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