Inter-generational Interactions and Families under Risks

Under the common theme of family insurances under risks during demographic transitions, this thesis attempts to answer the following research questions empirically. Focusing on the family support system and the old-age risks in China, Chapter 2 looks into the implications of having a smaller family size on parental labor supply, and Chapter 3 studies how children and parents interact with inter-generational transfers in time and money. Chapter 4 explores how rural families fare economically under weather shocks.
Findings in this thesis jointly establish a vital role of children in parents’ old age. Having more children prevents parents from everlasting work, and children reciprocate differential early life transfers from parents with money and time supports. Migration plays a crucial role in explaining the nexus between intergenerational interactions, and it is also central to the risk management of rural families. Results show that good weather may even lead to a lower total household income due to a large decrease in migration.