Family Support in Hard Times: Dynamics of Intergenerational Exchange after Adverse Events

TitleFamily Support in Hard Times: Dynamics of Intergenerational Exchange after Adverse Events
Publication TypeReport
Year of Publication2020
AuthorsSchaller, J, Eck, C
Series TitleNBER Working Paper
Document Number28295
InstitutionNational Bureau of Economic Research
CityCambridge, MA
Keywordsearned income, Health Shocks, Informal care, Intergenerational transfers, spousal death, Wealth
Abstract

We use an event-study approach to examine changes in intergenerational financial transfers and informal care within families following wealth loss, job exit, widowhood, and health shocks. We find sharp reductions in parental giving to adult children following negative shocks to parents' wealth and earned income, particularly in low-wealth households. Parental giving also decreases with some health shocks and increases following spousal death. Meanwhile, children of low-wealth households increase financial transfers to their parents following adverse shocks and children in both high- and low-wealth households increase their provision of informal care to parents following a wide range of adverse shocks.

DOI10.3386/w28295
Citation Key11367