Interdependent transfers and individual needs: Parental support to children in the Netherlands

Tomini, Florian and Borghans, Lex (2010). Interdependent transfers and individual needs: Parental support to children in the Netherlands.

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  • Author Tomini, Florian
    Borghans, Lex
    Title Interdependent transfers and individual needs: Parental support to children in the Netherlands
    Publication Date 2010
    Abstract Inter-vivos transfers from parents to children are the most common type of transfers in the family. Parents usually transfer part of their wealth, help with every day activities or give support and advice to their children. These transfers depend on parents�۪ giving patterns, particular needs of children in a given time, but also on transfers given to the other children or the same child over time. But to what extent the likelihood of transferring money, services or support to one of the children will be influenced by transfers to other children (and/or to the same child in different years)? We use Netherlands Kinship Panel Study data for 2005 and 2007 to explore both the ���between-children�۝ and ���between-time�۝ interdependence of different transfers. The transfers we have considered include money transfers, household help, odd-jobs help, advice, and interest given to children. We examine the correlation of different transfers focusing at the effect that transfers to other children (or to the same child over the years) have on the likelihood of transferring particular transfers. We are able to distinguish both the ���equity�۝ effect and the ���exhaustion�۝ effect of parents. Parents tend to transfer similar transfers to both children, and also positively associate transfers among them. However, parents seem to ���exhaust�۝ their resources and do not always relate different transfers with each-other when it comes to different children. JEL Classifications: D10; D13; D31; J13 Key words: inter-vivos transfers, family solidarity, intergenerational, equity
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    Created: Fri, 13 Dec 2013, 12:14:34 JST