Informal care and inter-vivos transfers: Results from the national longitudinal survey of mature women

Edward C. Norton, Lauren Nicholas, Sean Sheng Hsiu Huang

Research output: Contribution to journalArticle

Abstract

Informal care is the largest source of long-term care for elderly, surpassing home health care and nursing home care. By definition, informal care is unpaid. It remains a puzzle why so many adult children give freely of their time. Transfers of time to the older generation may be balanced by financial transfers going to the younger generation. This leads to the question of whether informal care and inter-vivos transfers are causally related. We analyze data from the 1999 and 2003 waves of National Longitudinal Survey of Mature Women. We examine whether the elderly parents give more inter-vivos monetary transfers to adult children who provide informal care, by examining both the extensive and intensive margins of financial transfers and of informal care. We find statistically significant results that a child who provides informal care is more likely to receive inter-vivos transfers than a sibling who does not. If a child does provide care, there is no statistically significant effect on the amount of the transfer.

Original languageEnglish (US)
Pages (from-to)377-400
Number of pages24
JournalB.E. Journal of Economic Analysis and Policy
Volume14
Issue number2
DOIs
Publication statusPublished - Apr 1 2014
Externally publishedYes

    Fingerprint

Keywords

  • Exchange
  • Informal care
  • Inter-vivos transfers

ASJC Scopus subject areas

  • Economics, Econometrics and Finance (miscellaneous)
  • Economics and Econometrics

Cite this