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Do social allowance transfers crowd out private transfers? An analysis of responses among elderly households in Taiwan
Author(s) -
Chuang Jason ChengChung
Publication year - 2012
Publication title -
international journal of social welfare
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.664
H-Index - 47
eISSN - 1468-2397
pISSN - 1369-6866
DOI - 10.1111/j.1468-2397.2011.00788.x
Subject(s) - allowance (engineering) , altruism (biology) , crowding out , demographic economics , economics , marital status , general social survey , labour economics , transfer (computing) , demography , psychology , population , sociology , social psychology , monetary economics , operations management , parallel computing , computer science
Chuang JCC. Do social allowance transfers crowd out private transfers? An analysis of responses among elderly households in Taiwan This article examines whether public transfers ‘crowd out’ private inter‐household transfers in Taiwan, focusing on two old age social allowance schemes (old age allowance and old age farmer allowance) during the 2002–2008 period. This study used a data set from the Survey of Family Income and Expenditure in Taiwan. Empirical evidence suggests that Taiwanese donors are strongly motivated by altruism, and that the increase of public transfers will crowd out private transfers, and vice versa. Besides, altruism is more likely to dominate among poorer elderly recipients, whereas the exchange motive would dominate among richer recipients. Thus, the response of Taiwanese donors is likely to neutralise the distributional impact of public transfers. Finally, the elderly are not a homogenous group, and the effect of public transfers on private transfers varies significantly by household characteristics, in particular depending on age, marital status and living arrangements.