Intergenerational transfers and European families: Does the number of siblings matter (original) (raw)
Related papers
Journal of European Social Policy, 2007
The ‘generational contract’ is the most important and also the most contentious dimension of contemporary welfare systems. Much of the debate on how to reform it is still truncated, however, by focusing on its public dimension only, especially on pensions and health-care provisions. For a full account, the transfer of resources between adult generations in the family needs to be included as well. So far, research on family transfers has almost exclusively been limited to single-country studies. In this article, we present a comparative study of financial transfers and social support in ten Western European countries based on the Survey of Health, Ageing and Retirement in Europe (SHARE) conducted in 2004. Our results confirm, at the European level, the existence of a common transfer pattern. There is a net downward flow from the older to the younger generations, both by inter vivos financial transfers and by social support. Transfers from the elderly parents to their children are much more frequent and also usually much more intense than those in the opposite direction. The positive balance decreases with age but even those over the age of 70 clearly remain net givers. Our results also demonstrate that country-specific transfer patterns follow the typology of welfare regimes. Transfers from parents to children are less frequent but more intense in the Southern European countries than in the Nordic ones, with the Continental European countries being somewhere in between the two. This welfare regime effect still holds after controlling for the most relevant characteristics of the parents.
The role of European welfare states in intergenerational money transfers: a micro-level perspective
Ageing and Society, 2010
This article uses a comprehensive theoretical framework to explain why parents send money to particular children, and examines whether intergenerational solidarity is shaped by spending on various welfare domains or provisions as a percentage of gross domestic product. The theoretical model at the level of parents and children distinguishes parental resources and children's needs as the factors most likely to influence intergenerational money transfers. Differences in state spending on various welfare domains are then used to hypothesise in which countries children with specific needs are most likely to receive a transfer. For parents we hypothesise in which countries parents with specific available resources are most likely to send a transfer. We use data from the first wave of the Survey of Health and Retirement in Europe (SHARE) to analyse the influence of welfare-state provisions on the likelihood of intergenerational transfers in ten European countries. The results indicate that, in line with our expectations, the likelihood of a transfer being made is the outcome of an intricate resolution of the resources (ability) of the parents and the needs of a child. Rather large differences between countries in money transfers were found. The results suggest that, at least with reference to cross-generational money transfers, no consistent differences by welfare state regime were found.
European patterns of intergenerational financial and time transfers
European Journal of Ageing, 2005
The ageing of the European population is expected to strongly influence both the structure of family relations and the pattern of private transfers between generations. Using data from the Survey of Health, Ageing and Retirement in Europe conducted from the perspective of adults aged 50 and above in ten European countries, we provide an analysis of financial and time transfers, either given or received. Our results show that cash gifts mainly flow to the younger generations, while time transfers are directed both upwards and downwards. When comparing the countries, we find some remarkable similarity in the pattern of transfers, although there are inter-country differences. These differences sometimes follow the expected north-south European gradient, but not always. The results suggest that the social and demographic transformations currently taking place in Europe often have contradictory and paradoxical effects upon the nature of intergenerational exchanges.
Measuring Intergenerational Financial Support: Analysis of Two Cross-National Surveys
Background The last decade has seen considerable research into intergenerational financial transfers in Europe. This research has produced significant insights into the nature, causes, and consequences of such transfers, as well as evidence of cross-national variation. Yet the findings of this research field are almost exclusively based on data from the Survey of Health, Ageing, and Retirement in Europe (SHARE). The dependency on SHARE data and this specific methodological approach may limit the inferences made by researchers examining intergenerational transfers in Europe. Objective This paper aims to explore whether instruments designed to measure intergenerational financial transfers are sensitive to various methodological parameters. Specifically, whether the prompts, reference period, and respondent identity affect the number and size of transfers that are reported. Methods To achieve this we compare data from SHARE and the Generations and Gender Programme (GGP) using Propensity Score Matching to identify which survey reports the most transfers and whether these differences are stable across sub groups. We also utilise specific features of SHARE and the GGP to examine whether variations in the reference period or asking the transfer giver or receiver affects the level of behaviour reported. Results The results show that the instruments are highly sensitive to changes in wording, the reference period, and the identity of the respondent. This suggests that existing findings in the literature may be sensitive to the specific methodology used by SHARE. Conclusions Whilst SHARE is an excellent data source, we would encourage studies of intergenerational transfers to validate their findings with multiple data sources.
The generational contract in the family: An analysis of transfer regimes in Europe
European Societies, 2012
Recent research has suggested that financial transfers from parents to their adult children in the family is less likely to take place but more intense – that is, for larger amounts – in the Southern European countries than in the Nordic ones, with the Continental European countries falling in-between the two. What remains to be examined is the variation among regimes in the social mechanisms regulating these transfers. Using data from the first wave of the Survey of Health, Ageing and Retirement in Europe (SHARE), the paper shows that financial transfers have different aims and meanings across the regimes. In Southern Europe parents support their children mainly through co-residence, and little economic support passes the walls of the house. In the Nordic countries, in contrast, parent-child co-residence is non-normative. Children leave their parents’ home early and then receive direct and explicit help from them. The Continental countries fall in-between.
Intergenerational Transfers in the Health and Retirement Study Data
SSRN Electronic Journal, 2010
Many economic analyses of public policy issues are based upon the life-cycle model of household behavior. The usual formulation omits private intergenerational transfers. This paper considers the possibility of a more sophisticated formulation that includes the latter. We examine 1992-2008 HRS data on inheritances and inter vivos gifts. We uncover an underreporting problem in the data: a household's financial respondent often seems to understate transfers from his/her in-laws. Nevertheless, other aspects of the data seem very useful. About 30-40 percent of households eventually inherit. Inheritances seem to reflect a mixture of intentional and accidental bequests, with the latter twice as prevalent.
Intergenerational Transmission of Poverty in the EU: An Empirical Analysis *
This study is concerned with the critical evaluation of the causal mechanisms by which poverty is reproduced and transmitted from one generation to the next, putting emphasis on the impact of parental background on offspring's welfare. By employing Generalized Linear Models and utilizing proper micro-data from the EU-SILC , the study analyses whether and to what extent certain characteristic of the family of origin affect children's probability of falling below or above the poverty line in selected EU countries (Denmark, France, Greece and the UK). These countries represent different social protection systems, according to the dominant debate on the welfare state typologies. The study shows that family background affects directly and indirectly the offspring's poverty risk in France, Greece and the UK. However, it appears that there is no such effect in Denmark. From a political economy perspective this finding provides insights for the significant impact that the social protection system and the welfare state institutions have on social mobility and on the intergenerational transmission of poverty in the EU.
2010
Objectives of the research Explicitly testing the assumptions on how welfare state arrangements might shape intergenerational family solidarity. Scientific approach / methodology Two assumptions are tested: (a) in countries with generous public pensions parents should be more likely to provide monetary support to their adult children, and (b) in countries with generous childcare and unemployment benefits adult children should be less likely to receive monetary support from their parents. New knowledge and/or European added value Contrary to earlier (mainly descriptive) findings, differences in intergenerational monetary support in families are not attributable to differences in welfare state generosity, but rather to differences in the financial circumstances of parents and adult children in the respective countries. Our findings do not fit the 'typology' thinking that is popular in research addressing welfare state arrangements. Key messages for policy-makers, businesses, trade unions and civil society actors Our findings call for a more holistic and more differentiated perspective on the role of European welfare states in intergenerational transfers in families.