Motives for intergenerational transfers: evidence from Malaysia

Area of Science:

• Economics
• Sociology
• Demography

Background:

• Intergenerational transfers are crucial family dynamics.
• Lack of social safety nets (Social Security, Medicare) in Malaysia highlights reliance on family support.
• Understanding motives behind these transfers is key to family economics and social policy.

Purpose of the Study:

• To empirically investigate motives for intergenerational transfers in Malaysia.
• To test hypotheses regarding old age security and repayment for parental investments.
• To examine the role of children's and spouse's income in these transfers.

Main Methods:

• Utilized data on time and money transfers between generations in Malaysia.
• Employed empirical analysis to explore economic and social hypotheses.
• Examined factors influencing repayment for parental investments.

Main Results:

• Children significantly contribute to old age security.
• Repayment for parental educational investments is a key motive.
• Children's income, and spouse's income for females, influence repayment.
• Evidence supports exchange of time help for money between parents and children.

Conclusions:

• Children serve as a vital source of old age security in the absence of formal social security.
• Intergenerational transfers are a form of reciprocal exchange, including financial and time-based support.
• Parental investment in education is recouped through children's support in old age.