Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/92497
Authors: 
Rottke, Simon
Klos, Alexander
Year of Publication: 
2013
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 621
Abstract: 
Based on the Italian Survey on Household Income and Wealth (SHIW) and the German Socio-economic Panel (SOEP), we show that household consumption drops after a child moves out of a household, while at the same time, per capita consumption increases significantly. Parents approximately upgrade their personal lifestyle up to the level of childless peers after all children are gone and save only a small proportion of the freed-up resources. Since parents had fewer resources to save while they were young, retirement preparedness among them is a more serious concern than among childless individuals.
Subjects: 
household finance
consumption
savings
children
retirement preparedness
JEL: 
D12
D14
Document Type: 
Working Paper

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