HOW ARE UPSTREAM TRANSFERS DETERMINED? NEW EVIDENCE FROM SOUTH KOREA

Abstract

Exploiting new data from South Korea on intergenerational transfers made in regular and irregular intervals, I examine what determines and motivates upstream transfers. The results indicate that regular transfers are largely motivated by altruism, but that irregular and in-kind transfers are unresponsive to parental economic need. The findings imply that public old-age support would crowd out regular transfers to some extent. It is also found that roles are divided among siblings in supporting the elderly parents: the eldest married son is likely to transfer regularly and the most, whereas the other siblings transfer irregularly or in-kind.