The residency decision of elderly Indonesians: a nested logit analysis

Area of Science:

• Demography
• Sociology
• Economics

Background:

• Understanding residency decisions among elderly populations is crucial for social policy and elder care.
• Few studies have specifically investigated the factors influencing the living arrangements of older adults in Indonesia.
• The role of adult children in elderly parents' residency choices requires further examination within the Indonesian context.

Purpose of the Study:

• To investigate the determinants of residency decisions among elderly Indonesians.
• To analyze the influence of adult children's characteristics on elderly parents' living arrangements.
• To assess the impact of economic factors, specifically parental and child earnings potential, on coresidency.

Main Methods:

• Utilizes data from the 1993 Indonesian Family Life Survey (IFLS).
• Employs a nested logit model to account for the hierarchical nature of residency decisions.
• Includes characteristics of living children and estimated earnings potentials of parents and children as explanatory variables.

Main Results:

• Children's characteristics were found to be significant determinants of elderly Indonesians' residency outcomes.
• The estimated earnings potentials of both parents and their children were not significant predictors of coresidency.
• The study provides empirical evidence on the factors shaping elderly living arrangements in Indonesia.

Conclusions:

• Adult children's attributes play a critical role in shaping where elderly Indonesians reside.
• Economic factors, such as earnings potential, appear less influential than familial characteristics in these residency decisions.
• This research contributes to the understanding of aging in place and family dynamics in developing countries.