RT Journal Article
SR Electronic
T1 Intergenerational Altruism and Retirement Transfers: Evidence from the Social Security Notch
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP JHRv58n01_Mukherjee
DO 10.3368/jhr.58.1.0419-10140R3
A1 Mukherjee, Anita
YR 2020
UL http://jhr.uwpress.org/content/early/2020/08/05/jhr.58.1.0419-10140R3.abstract
AB I contribute new evidence on altruistic preferences in intergenerational transfers using variation in Social Security benefits induced by an inflation-indexing mistake. The instrument is most relevant for those with low education, so I focus on this group. I find support for pure altruism because individuals who received additional Social Security benefits passed on 15.4 percent to children via inter vivos transfers without receiving any additional care in return. On the contrary, children reduce caregiving monotonically with increases in parental Social Security benefits. Adult female children appear to be the most affected as they both receive monetary transfers and reduce caregiving.