NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Effects of Income and Wealth on Time and Money Transfers between Parents and Children

Joseph G. Altonji, Fumio Hayashi, Laurence Kotlikoff

NBER Working Paper No. 5522
Issued in April 1996
NBER Program(s):   AG   LS   PE

We use the 1988 PSID to study the effects of income and wealth on transfers of money and time between individuals and their parents as well as the effects of incomes of other relatives on these flows. We relate the relative incomes of parents and parents in-law to transfer amounts given and received by married couples. We also study how the relative incomes of divorced parents influence transfers. We find that money transfers tend to reduce inequality in household incomes and that time transfers are only weakly related to income differences. Richer siblings give more to parents and receive less. Among parents and parents in-law the richer set of parents is more likely to give money and less likely to receive money. The same is true of divorced parents. In contrast to the implications of simple exchange models of transfers, there is little evidence in the cross section or in the analysis using siblings that parental income or wealth raises time transfers from children or that time transfers are exchanged for money transfers. In the cross section and among siblings, the strong negative relationship between time transfers and distance from parents is not associated with a strong negative relationship between distance and money transfers. We discuss the implications of our results for alternative models of transfers.

download in pdf format
   (3195 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (3195 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w5522

Published: Published as "The Effects of High School Curriculum on Education and Labor Market Outcomes", Journal of Human Resources, Vol. 30, no. 3 (1995): 409-1 38.

Users who downloaded this paper also downloaded these:
Altonji, Hayashi, and Kotlikoff w5378 Parental Altruism and Inter Vivos Transfers: Theory and Evidence
Altonji, Hayashi, and Kotlikoff w3046 Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data
McGarry w7593 Testing Parental Altruism: Implications of a Dynamic Model
Charles and Hurst w9314 The Correlation of Welath Across Generations
Cox and Raines Interfamily Transfers and Income Redistribution
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us