Essays on Intra-household allocation : Evidence from HART panel data
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2024
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2567
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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Pailin Suntigul (2024). Essays on Intra-household allocation : Evidence from HART panel data. Retrieved from: https://repository.nida.ac.th/handle/123456789/7077.
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Essays on Intra-household allocation : Evidence from HART panel data
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Abstract
This dissertation investigates resource allocation within extended Thai families, focusing on intergenerational transfers and time allocation decisions of elderly family members. The study uses balanced panel data from the Health, Aging, and Retirement in Thailand (HART) project, conducted by the Center for Aging Society Research (CASR) at the National Institute of Development Administration (NIDA). The dataset is derived from biennial national surveys conducted in 2015, 2017, and 2020, covering 5,616 households across Thailand, with a focus on individuals aged 45 and older. A sample of 312 extended household units per wave (N=936) was selected, representing three generations, including grandparents, adult children, and grandchildren. The HART dataset includes information on household demographics, family transfers, occupation, income and expenditure, and life expectancy, providing insights into the economic behavior of extended families.
This dissertation is organized around two primary objectives. The first objective examines the patterns and motivations behind intergenerational transfers, including both monetary and non-monetary resources, between grandparents, adult children, and grandchildren. Monetary transfers refer to financial assistance provided between family members, whereas non-monetary transfers refer to caregiving and time provided by family members to help meet various needs, including the provision of goods, health care, meal preparation, emotional support, and facilitation of leisure activities. By applying Becker’s household production theory and bargaining models, and utilizing fixed-effect logit models, the study reveals that downward transfers (from grandparents to younger generations) are primarily driven by altruism and familial obligations, while upward transfers (from adult children to grandparents) are influenced by a combination of altruism and bargaining power within the household. These findings emphasize the importance of economic interdependence and cooperative decision-making within extended families.
The second objective examines the time allocation decisions of grandparents, specifically the trade-offs between income-generating activities, paid work in the labor market, and non-income-generating activities, unpaid work within the family. This study applies Becker’s model of time allocation and uses the Heckman Selection Model to address sample selection bias. The findings show that grandparents increasingly allocate their time to caregiving, particularly in households where co-residence and financial stability are present. These findings emphasize that financial constraints and family structure significantly influence grandparents’ decisions to reduce engagement in the labor market and allocate more time to unpaid work within the family.
The primary contribution of this dissertation is the integration of intergenerational transfers and time allocation decisions within extended families, an area often neglected in traditional family economics models. This study expands the theoretical understanding of generational differences in motive preferences for resource allocation within the family, economic interdependence, and family structure. The investigation focuses on the economic contributions of grandparents in caregiving roles, their influence on caregiving practices, and the dynamics of multigenerational family structures. These findings refine existing theoretical frameworks, improving their relevance and applicability to real-world family dynamics.
This dissertation provides policy recommendations based on empirical analysis and the family economics framework to address the inefficiencies in resource allocation within extended families, particularly in the areas of intergenerational transfers and the allocation of time. The proposed recommendations include flexible work options for the elderly, such as reduced working hours, part-time employment, and remote work, to reduce opportunity costs associated with the allocation of time. Additionally, tax incentives and housing subsidies are suggested to support grandparents who provide unpaid work, especially those who significantly contribute to the care of grandchildren, thereby easing the financial burden on multigenerational households. The expansion of Thailand’s Old Age Allowance is advised to decrease financial dependence among grandparents who lack pension coverage, ensuring they have a basic income to support their informal caregiving roles and maintain their well-being. Direct fiscal transfers for elderly caregivers are proposed to offset the opportunity costs associated with the allocation of time between paid work in the labor market and unpaid work in the family, particularly for those who shift from paid work to unpaid work, thus reducing their financial strain. Lastly, family-oriented social programs are recommended to strengthen intergenerational welfare by improving the efficiency of intergenerational transfers to promote economic stability within multigenerational families and reduce financial inequality. These programs would target low-income elderly caregivers through direct financial assistance and invest in skill development to increase their productive capacity, thus improving both informal caregiving efficiency and labor market participation.
This dissertation is structured into five chapters. Chapter 1 introduces the study, outlining the research objectives, questions, and the socio-economic context of Thai households. Chapter 2 presents a comprehensive review of the literature on intra-household decision-making, discussing relevant theoretical frameworks and empirical studies related to resource allocation within familial structures. Chapter 3 presents the research methodology, including the data sources, identification strategies, and econometric models employed to examine intergenerational transfers and time allocation decisions. Chapter 4 presents the empirical findings, analyzing the patterns of both monetary and non-monetary resources transfers within extended Thai families, and investigates the time allocation decisions of elderly family members. Finally, Chapter 5 offers conclusions and policy recommendations based on the study’s findings, aimed at improving resource allocation and intergenerational welfare within Thai extended families.
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Thesis (Ph.D. (Economics))--National Institute of Development Administration, 2024