Horioka, Charles Yuji Gahramanov, Emin Hayat, Aziz Tang, Xueli
Year of Publication:
ISER Discussion Paper No. 970
In this paper, we conduct a theoretical analysis of why individuals provide care and attention to their elderly parents using a two-period overlapping generations model with endogenous saving and a "contest success function" and test this model using micro data from a Japanese household survey, the Osaka University Preference Parameter Study. To summarize our main findings, we find that the Japanese are more likely to live with (or near) their elderly parents and/or to provide care and attention to them if they expect to receive a bequest from them, which constitutes strong support for the selfish bequest motive or the exchange motive (much stronger than in the United States), but we find that their caregiving behavior is also heavily influenced by the strength of their altruism toward their parents and social norms.
Altruism attention bequest motive care caregiving contest success function coresidence elderly care exchange motive family care informal care intergenerational transfers Japan parental care parent-child relations selfishness social norms strategic bequest motive