Do coresidency and financial transfers from the children reduce the need for elderly parents to works in developing countries?

Abstract

Do elderly parents use coresidence with or financial transfers from children to reduce their own labour supply in old age? This paper is one of only a few studies that seeks to formally model elderly labour supply in the context of a developing country while taking into account coresidency with and financial transfers from children. We find little evidence that support from children-either through transfers or coresidency-substitutes for elderly parents' need to work. Thus, as in developed countries, there is a role for public policy to enhance the welfare of the elderly population. Show more