Pension Coverage for Parents and Educational Investment in Children : Evidence from Urban China
When social security is established to provide pensions to parents, their reliance upon children for future financial support decreases, and their need to save for retirement also falls. In this study, the expansion of pension coverage from the sta...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/10/25202815/pension-coverage-parents-educational-investment-children-evidence-urban-china http://hdl.handle.net/10986/22879 |
| Summary: | When social security is established to
provide pensions to parents, their reliance upon children
for future financial support decreases, and their need to
save for retirement also falls. In this study, the expansion
of pension coverage from the state sector to the non-state
sector in urban China is used as a quasi-experiment to
analyze the intergenerational impact of social security on
education investments in children. In a
difference-in-differences framework, a significant increase
in the total education expenditure is found to be
attributable to pension expansion. The results are unlikely
to be driven by other observable trends. They are robust to
the inclusion of a large set of control variables and to
different specifications, including one based on the
instrumental variable method. |
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