Should I Stay or Should I Go? Inter-Generational Transfers and Residential Choice. Evidence from China

This paper explores the relationship between parental transfers in early life and the support provided by children to their elderly parents in terms of both financial and time contributions. The study hypothesizes that the type of transfer received by the child influences the nature of support they provide in later life. Using data from the China Health and Retirement Longitudinal Study (CHARLS), the findings suggest a positive correlation between educational transfers and financial support provided by the child, while transfers towards supporting a child’s marriage are positively linked to increased time support in terms of visits to the elder parents. The results also provide tentative evidence that children’s place of residence may act as a mediating factor, with educational transfers leading to greater geographical distance, while marital transfers are associated with children staying closer to their parents.