A cross-sectional study of inter-household transfers of income and time
Abstract
This study investigates the socioeconomic factors related to giving and receiving inter vivos inter-household transfers of income and time, using as theoretical background the life cycle hypothesis and the theories of social exchange, altruism, and household production. Data from the 1986 Survey of Consumer Finances on a nationally representative sample of 2,679 households were used. The probit procedure was used to test the hypotheses related to the probabilities of giving financial support to relatives and friends, receiving financial support from relatives and friends, and giving time to family members and friends. The effect of the variables related to the amount of financial support given and received was estimated by tobit analysis. GLM was used to investigate factors related to gifts of $3,000 or more over the previous three years. Cross tabulation was used to verify the complementarity or substitutability between time and financial support. Years of education of the household head, recent divorce of givers, number of children living outside the household, assets, home ownership and windfall income are positively related to the probability of giving financial support. The amount given is positively related to assets, belonging to an ethnic group other than black or white, and absence of other adults from the household. The probability of receiving financial support is positively related to years of education, being unmarried and not owning a home. The amount of support received is smaller for the unmarried and for recipients of windfall income than for their counterparts. Conversely, recently divorced individuals receive larger amounts. The probability of giving time is lower for households headed by older persons than for those headed by middle-aged individuals. Additionally, the gifting of time is positively associated with years of education, being black, recent divorce, number of children living outside the household, receiving a windfall income, presence of other adults in the household, and giving time to charity. The probability of giving time is negatively related to total household debt. The cross tabulation suggested that the gifting of financial support and the gifting of time are substitutes.
Degree
Ph.D.
Advisors
Porter, Purdue University.
Subject Area
Families & family life|Personal relationships|Sociology|Home economics education|Economics
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