The Well-Being of the Elderly in Asia: A Four-Country Comparative Study

6. Intergenerational Support and Transfers

Chapter 6 INTERGENERATIONAL SUPPORT AND TRANSFERS Ann BiddZecom, Napaporn Chayovan, andMary Beth DfstedaZ I ntergenerational support and transfers-which commonly take the forms of coresidence, time, and money-are fundamental aspects of the social fabric in society. Intergenerational support systems play a key mediating role between broad societal-level changes, such as declining fertility rates and rising GNP, and the individual welfare outcomes ofthe elderly, such as physical health and economic status (see Figure 4.l in Chapter 4). Moreover, family transfers have social and economic consequences that can directly impinge on the design and effectiveness ofpublicsupport programs and policies (Mason, Lee and Russo, 2001; National Research Council, 2001; Schoeni, 1997). Both family and public transfers are often intended to smooth the differing consumption needs and productive contributions that occur across the life course, and when changes occur in one source ofsupport, there are likely to be accommodations in the other source of support. Family support and transfer systems are particularly critical to examine in Asia because of the historically important role of family care for the elderly, especially elderly parents, and the recent broad-level changes that are sweeping the region (see Chapter 2). For example, survey data show that transfers from family members remain central to the economic well-being of most older persons in Asia. Income from family members, primarily adult children, was the primary source of income for the majority of the elderly in Fiji, Korea, Malaysia, and the Philippines in the mid-1980s (Andrews et ai., 185 186 The Well-Being ofthe Elderly in Asia 1986: 72); Taiwan, Singapore, Thailand, and the Philippines in the mid-1990s (see Chapter 8); major urban areas of Vietnam in 1996-1997 (Anh, Cuong, Goodkind and Knodel, 1997); Cambodia in 1998 (Kato, 2000); and South Korea in 1998 (Yoon and Cha, 1999). In Malaysia, the majority of elderly receive money transfers from children, regardless ofwhether this is a primary source of income or not (Lillard and Willis, 1997). Recent studies of urban areas in China fmd that from one-third to one-halfof Chinese elderly receive financial assistance from family (Chen and Silverstein, 2000; Hermalin, Ofstedal and Shih, forthcoming). Intergenerational support systems are not static institutions in the face of broad demographic, economic and social changes. Rather, these systems of family support come under strain and are forced to adapt in both function and form (Hermalin, 1998; Martin and Kinsella, 1994; Mason, 1992). In this sense, Asia is at a crossroads. Strong norms ofobligation for intergenerational support, still very much in force, currently coexist with massive changes on key demographic and socioeconomic dimensions such as lowered fertility, longer life expectancies, increased female labor force participation, and a switch from agriculture-based economies to manufacturing and service-based economies. Given current and projected increases in the older population in both proportionate and absolute terms, governments face questions about the degree to which family support is or will continue to be sufficient for the needs of the elderly (Holden, 1996; Lee and Mason, 2000; Martin, 1990; Mason, Lee and Russo, 2001; Ogawa and Retherford, 1997; Phillips, 2000; Silverman, 1995). Concern is also growing in a number ofpolitical and scientific quarters that the traditional system of familial support for the elderly might be eroding as couples bear fewer children, as more adult children live away from their parents, and as women enter the labor force in larger numbers (Holden, 1996; Westley, Lee and Mason, 2000; Silverman, 1995). It thus becomes crucial to understand intergenerational support because of the key intermediate role that it plays in the well-being of the elderly and the relevance it has for public policy, as countries seek to attend to the emerging needs of the elderly without undermining the strong norms for family support ofthe elderly. Family transfers are quite difficult to measure (Hermalin, 1999), but governments are increasingly pressed to monitor sources of private support as they respond to societal-level changes and public programs to meet the needs of the elderly. As governments continue to develop and implement policies and programs inAsia, there is a concomitant need to study how private transfer patterns adapt to new public sources of support and what implications these changes have for future state initiatives. This chapter describes changes to the family support system in the Philippines, Thailand, Taiwan, and Singapore; provides a detailed snapshot Intergenerational Support and Transfers 187 of current intergenerational support systems and covariates of...