How well do children insure parents against low retirement income? An analysis using survey data from urban China

Fang Cai, John Giles, Xin Meng

    Research output: Contribution to journalArticle

    Abstract

    As population aging becomes more pronounced in the developing world, the uneven implementation of social safety nets raises important questions as to how well traditional family-based mechanisms insure elderly incomes when pension systems fail. Using a unique dataset from a recent household survey conducted in urban China, we find evidence that private transfers respond to low household income of retired workers when income falls below the poverty line. This finding is consistent with an altruistic motive for transfers at low levels of household income. At the same time, however, the transfer response to elderly pre-transfer income is not sufficient to fully cover shortfalls that arise with severe pension arrears and low retirement income.
    Original languageEnglish
    Pages (from-to)2229-2255
    JournalJournal of Public Economics
    Volume90
    Issue number2006
    DOIs
    Publication statusPublished - 2006

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