Adverse Life Events and Intergenerational Transfers

Abstract

While there has been broad interest in the direct effects of major life events on older households that experience them, little attention has been paid to the intergenerational transmission of those effects-how negative shocks in parents' households affect the outcomes of their adult children-or to the role that grown children play in helping their parents recover from adverse events. We use regression and event study approaches to examine within-family changes in monetary transfers and informal care following wealth loss, involuntary job displacement, spousal death, and health shocks in retirement-aged households. We find that giving to adult children is responsive to changes in parents' wealth and earned income. We document large reductions in the likelihood of making financial transfers to children following wealth loss and job displacement, particularly in households with low accumulated wealth. We also find that parents increase their transfers following spousal death and reduce them with the onset of disability or poor health. We find that upstream transfers are also responsive to life eventschildren, particularly those with low-wealth parents, increase their financial transfers and in-kind assistance following adverse shocks in their parents' households.

Heterogeneity in needs and purchases in Australian retirees

“…This is consistent with the findings of McConnel and Deljavan (1983), who find that retirees tend to spend a lower proportion of additional income on necessities but a greater proportion on gifts and donations compared to those nearing retirement. Schaller and Eck (2019) report that giving increases following spousal death, which is consistent with increased giving by singles.…”

Generationen zwischen Konflikt und Zusammenhalt

“…Monetäre Zuwendungen erhalten erwachsene Kinder insbesondere während ihrer Ausbildung oder bei Arbeitslosigkeit (Schenk et al 2010). Bei den Eltern kann indes ein schlechter Gesundheitszustand zu einem erhöhten Eigenbedarf an finanziellen Mitteln führen, was mit einer Umkehr der Geldflüsse von Kindern an ihre Eltern einhergehen kann (Schaller/Eck 2019). Bisherige Forschung weist zudem darauf hin, dass Geld als universales Tauschmittel auch in Familienbeziehungen als Gegenleistung für erhaltene Hilfe fungieren kann (Norton/ Houtven 2006vgl.…”