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Elderly Care and Intrafamily Resource Allocation when Children Migrate
1Department of Economics, University of Colorado at Boulder.
The Journal of Human Resources
|April 21, 2012
Summary
Migrant children
Area of Science:
- Gerontology
- Sociology
- Economics
Background:
- International migration presents unique challenges for elderly care, particularly when adult children live abroad.
- Migrant children may offer financial support but lack the capacity for direct physical care.
- Understanding intrafamily dynamics is crucial for effective elderly care provision.
Purpose of the Study:
- To analyze the strategic interactions between siblings regarding the allocation of elderly care responsibilities.
- To differentiate between financial and time contributions in the context of family decision-making.
- To explore the motivations behind children's contributions to parental care.
Main Methods:
- Utilized a non-cooperative game theory framework to model family decision-making.
- Estimated best response functions for individual physical and financial contributions.
- Employed instrumental variables and family fixed effects to address endogeneity in migration and contribution decisions.
Main Results:
- Financial contributions from siblings were found to be strategic complements.
- Time contributions (physical care) from siblings were identified as strategic substitutes.
- These patterns held true for both migrant and non-migrant children.
Conclusions:
- Sibling interactions in elderly care involve both complementary financial support and substitutable time contributions.
- Children's care decisions are influenced by a combination of strategic bequest motives and public good considerations.
- The findings highlight the complex interplay of financial and time investments in intrafamily elderly care.
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