Number of Children and Monetary Transfers to Elderly Parents in Rural China

Abstract

Using two-wave balanced panel data from the China Health and Retirement Longitudinal Survey (CHARLS), this study examines the association between the number of children and the monetary transfers received by elderly parents in rural China. Through theoretical and empirical analysis, we find evidence that parents with more children receive more economic transfers. For each additional child, the probability of receiving transfers increases by 3.1%, and the amount of total transfers increases by 328 yuan, which is roughly equivalent to 5 percentage points of the per capita pre-transfer income of rural families. We conclude that the positive impact for the elderly is mainly reflected in cash transfers, specifically for those from high-income families, with non-co-residence with their children, and aged 60-69. Meanwhile, the quality of offspring and intimate parent-child ties stimulate the effectiveness of the number of children on the monetary transfers received by elderly persons. From the younger generation's perspective, more siblings also contribute to reducing the burden of support for each child. These findings enhance our understanding of the relationship between the number of children and upstream intergenerational monetary transfers, and provide us with a useful reference for future policy design that encourages children to meet their filial obligations.