Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141491
Authors: 
Komura, Mizuki
Ogawa, Hikaru
Year of Publication: 
2016
Series/Report no.: 
IZA Discussion Papers 9732
Abstract: 
Studies have shown that the older sibling often chooses to live away from his elderly parents intending to free ride on the care provided by the younger child. In the presented model, we incorporate income effects and depict a different pattern frequently observed in Eastern countries; that is, the older sibling lives near his or her parents and takes care of them in old age. By generalizing the existing model, we show three cases of elderly parents being looked after by (1) the older sibling, (2) the younger sibling, and (3) both siblings, depending on the relative magnitude of the income effect and the strategic incentive for one sibling to free ride on the other. Our study also investigates the effect of changes in relative income on the level of total care received by parents.
Subjects: 
location choice
income effect
sibling
elderly care arrangement
JEL: 
H41
J17
Document Type: 
Working Paper

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