Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/222147
Authors: 
Edwards, Kathryn Anne
Wenger, Jeffrey B.
Year of Publication: 
2019
Citation: 
[Journal:] IZA Journal of Labor Economics [ISSN:] 2193-8997 [Volume:] 8 [Year:] 2019 [Issue:] 1 [Pages:] 1-44
Abstract: 
The risk of labor market, health, and asset-value shocks comprise profound retirement savings challenges for older workers. Parents, however, may experience added risk if their children experience adverse labor market shocks. Prior research has shown that parents support their children financially through an unemployment spell. In this paper, we also provide evidence of financial support from parents and investigate if this financial support is accompanied by adjustments to parental consumption, income, or savings behavior. With longitudinal data on mothers and children from the Panel Study of Income Dynamics, we use within-mother variation in behavior to identify the effect of a child's labor market shock on parent outcomes. We find evidence of a decline in consumption, an increase in labor supply, and a decrease retirement savings, though the results are heterogenous among mothers. Our results point to aggregate inefficiencies and inequities that may result from family risk sharing.
Subjects: 
Unemployment
intervivos transfers
retirement security
consumption
female labor supply
JEL: 
D64
J6
J20
D15
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Article

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