Number of Children and Living Arrangements of the Elderly in China

Fengming Chen and Hiroshi Yoshida

No 352, TERG Discussion Papers from Graduate School of Economics and Management, Tohoku University

Abstract: This study examines the effects of the number of children on the living arrangements of married and widowed individuals using data from the 2008 wave of the Chinese Longitudinal Healthy Longevity Survey. While the literature offers mixed results owing to the endogeneity bias from the number of children, we use sex dummy variables of the first and second parity as instrumental variables to correct the bias and find that the number of children has a statistically significant and positive effect on the probability of cohabitation for both subsamples. The magnitude of this effect in the widowed subsample is about 1.64 times that in the married subsample, indicating that children play a more important role in the case of widowed individuals.

Pages: 16 pages
Date: 2016-08
New Economics Papers: this item is included in nep-age and nep-cna
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Persistent link: https://EconPapers.repec.org/RePEc:toh:tergaa:352

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