An exchange motive in upstream intergenerational transfers: evidence from South Korea. Issue 1 (2nd January 2018)

• Record Type: Journal Article
• Authors: Son, Hyelim
• Is Part Of: Journal of the Asia Pacific economy. Volume 23:Issue 1(2018)
• Page Start: 173
• Page End: 185
• Publication Date: 2018-01-02
• Subjects: Intergenerational transfer -- motivation of private transfer -- exchange motive -- old age; Asia -- Economic conditions -- 1945- -- Periodicals; Pacific Area -- Economic conditions -- Periodicals; Asia -- Economic integration -- Periodicals; Pacific Area -- Economic integration -- Periodicals; 330.95
• DOI: 10.1080/13547860.2018.1434752
• Languages: English
• ISSNs: 1354-7860

Abstract

ABSTRACT: This paper examines the exchange motive behind upstream intergenerational transfers from the adult children to their elderly parents in Korea. While the altruistic motive has been extensively studied, evidence on the exchange motive behind private transfers, i.e. that transfers are provided in exchange for the service provided by the recipient, has been relatively scarce. To test for the presence of exchange motive, childcare provided to grandchildren by elderly parents is used to measure service provision. Using a family fixed effect model, we find that elderly parents who provide care for their grandchildren are more likely to receive transfers, and more likely to receive a larger amount of transfer, providing evidence on the operation of an exchange motive in upstream transfers. We further show that this motive operates mainly through regular transfers and not through irregular transfers.