TY - JOUR
T1 - Asset or burden? Impact of children on parents’ retirement
AU - Jeong, Su Yeon
AU - Kim, Jinyoung
N1 - Funding Information:
Kim was supported by a Korea University Grant ( K2009211 ).
PY - 2020/12
Y1 - 2020/12
N2 - If parents receive financial support in retirement from their children, having more children with higher earning power may expedite their retirement. On the other hand, retirement may be delayed if parents are burdened with educational expenses for children. We empirically investigate how the quantity and the education of children influence their parents’ retirement decisions. Due to the endogeneity of childrearing in the retirement decision, we employ the instrumental variable method with twin births and child deaths as instruments. We find that parents retire earlier when they have more children and better educated children and they receive a significant amount of transfers from children.
AB - If parents receive financial support in retirement from their children, having more children with higher earning power may expedite their retirement. On the other hand, retirement may be delayed if parents are burdened with educational expenses for children. We empirically investigate how the quantity and the education of children influence their parents’ retirement decisions. Due to the endogeneity of childrearing in the retirement decision, we employ the instrumental variable method with twin births and child deaths as instruments. We find that parents retire earlier when they have more children and better educated children and they receive a significant amount of transfers from children.
KW - Old-age support
KW - Quantity and quality of children
KW - Retirement
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U2 - 10.1016/j.asieco.2020.101251
DO - 10.1016/j.asieco.2020.101251
M3 - Article
AN - SCOPUS:85094627353
VL - 71
JO - Journal of Asian Economics
JF - Journal of Asian Economics
SN - 1049-0078
M1 - 101251
ER -