Money for Time? Evidence From Intergenerational Interactions in China

"Filial piety" is deeply embedded value in Asian culture, whereby younger individuals are expected to provide support to the older generation. Nevertheless, financial support is frequently prioritized to the detriment of companionship. Employing data on about 50,000 households from the China Family Panel Studies (CFPS) survey (2016-2022), this study demonstrates a notable substitution between the provision of financial support to their older parents and the allocation of greater time to interact with them. The results additionally indicate that such substitution is more pronounced among males, individuals of working age, and those in the middle class. However, this issue could be addressed through the implementation of legislation that explicitly requires adult children to regularly visit and communicate with their older parents. In light of these findings, it is evident that there is an opportunity for policymakers to devise innovative strategies that will enhance family solidarity and support for older people.