INTERGENERATIONAL SUPPORT AND THE LIFE-CYCLE INCOMES OF YOUNG MEN AND THEIR PARENTS - HUMAN-CAPITAL INVESTMENTS, CORESIDENCE, AND INTERGENERATIONAL FINANCIAL TRANSFERS

This article examines the resource allocations of parents in the form of both shared residence with and financial transfers to their young adult sons. Based on an overlapping generations model incorporating a game between parents and adult children, estimates of the determinants of such transfers are obtained from the kinship-linked cohorts of the National Longitudinal Surveys. The estimates suggest that both types of parental assistance are as important as governmental transfers in supporting young men and are responsive to the current and anticipated earnings of their offspring, suggesting that young men cannot adequately smooth their consumption without parental help.