Location: 368A Heady Hall
Description: Marla Ripoll
"The Patterns of Parental Intervivos Transfers to Adult Children"
Abstract: Parental intervivos transfers to their non-coresident adult children represent around 33% of all intergenerational transfers received in the United States (Gale and Scholz, 1994). Cross-sectional data has been commonly used to characterize the patterns of these transfers and to test the predictions of different models. This paper exploits panel data from the Health and Retirement Survey from 1992 to 2014 to uncover the life-cycle patterns of intervivos transfers. The panel dimension allows to control from unobserved family and children characteristics. We focus on the timing of parental transfers and provide a characterization of the age profile of both the probability of receiving a transfer and the amount. We also analyze the relationship between lifetime transfers, permanent income of the parent and permanent income of the adult child. Finally, we discuss how different versions of a model with parental altruism may be consistent with the documented dynamics of intervivos transfers.
Contact Person: Juan Carlos Cordoba