Financial Reciprocity and Elder Care: Interdependent Resource Transfers

Abstract

A sample from the Wisconsin Longitudinal Study was used to examine the influence of parent-to-child financial transfers and economic resources on child-to-parent financial transfers, caregiving, time-help, and coresidence as multiple, interdependent transfers from middle-aged adult children to their elderly parents. There were strong positive effects of prior parent-to-child financial transfers in the models of caregiving, time help, and coresidence but no effect on child-to-parent financial transfers. Coresidence, caregiving, and time-help are complements but there was no interdependence between child-to-parent financial transfers and caregiving or time-help. The effects of parents’ incomes and net worth are interpreted as evidence about motives for transfers to them.