Asset or burden? Impact of children on parents’ retirement

Su Yeon Jeong, Jinyoung Kim

Research output: Contribution to journalArticlepeer-review

Abstract

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.

Original languageEnglish
Article number101251
JournalJournal of Asian Economics
Volume71
DOIs
Publication statusPublished - 2020 Dec

Keywords

  • Old-age support
  • Quantity and quality of children
  • Retirement

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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