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More Schooling, More Generous? Estimating the Effect of Education on Intergenerational Transfers †
Author(s) -
Yin Ting,
Zhang Junchao
Publication year - 2022
Publication title -
asian economic journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.345
H-Index - 28
eISSN - 1467-8381
pISSN - 1351-3958
DOI - 10.1111/asej.12260
Subject(s) - endogeneity , economics , instrumental variable , social security , demographic economics , china , famine , social mobility , longitudinal data , labour economics , econometrics , demography , sociology , political science , social science , law , market economy
This paper studies the causal effect of education on intergenerational transfers from/to adult children. Using micro‐data from the China Health and Retirement Longitudinal Study, we use exogenous variations in parents' schooling induced by China's Great Famine to take account of the endogeneity of education and then estimate the effect of schooling on the probability of receiving/giving transfers from/to adult children. The instrumental variable estimates show that an additional year of schooling has a negative effect on the probability of receiving transfers but a positive effect on the probability of giving transfers at old age. Our results have some implications regarding social security and education policies in aging societies.