Published in:University Ca' Foscari of Venice, Dept. of Economics Research Paper Series ; No. 13/WP/2019
Extent:
1 Online-Ressource (47 p)
Language:
English
DOI:
10.2139/ssrn.3385274
Identifier:
Origination:
Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments May 9, 2019 erstellt
Description:
This paper examines the interaction between altruism towards offspring and precautionary savings. It investigates whether increased uncertainty in children labor income fosters savings of parents. We first construct a two-periods and two-generations model, to underline which are the mechanisms behind the intergenerational precautionary motive for savings. Second, we exploit two micro datasets to test the main theoretical implications. Parents' consumption turns out to respond to the offspring's income risk. This result is robust to the presence of family fixed effects and to many alternative empirical specifications