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Private Intergenerational Transfers as a Source of Support for Households with Children

Student: Lidia Shenshina

Supervisor: Anna Alekseevna Mironova

Faculty: Faculty of Social Sciences

Educational Programme: Demography (Master)

Year of Graduation: 2020

Russian society is characterized by the high importance of inter-family mutual assistance despite the existence of a system of state transfers. According to the researchers, the intergenerational private transfers from the older generation to the younger generation are the predominant type of transfers in Russia: according to the RLMS data, for the period from 2007 to 2018 on average 12% of all households received material transfers from their parents, while 6.8% of all households received transfers from their children. This illustrates the need for a detailed study of recipient- households where younger generation lives. This work focuses on private intergenerational transfers to households with children. It is noted that demographic changes that occur in society have a significant impact on the flow of private intergenerational transfers to households with children. Currently, the age profile of poverty in Russia is changing: the risk of poverty for children under 16 is increasing. All this determines the relevance of this study. The purpose of this study is to determine the role of private intergenerational transfers as a source of support for households with children. Research objectives: to study theoretical and empirical approaches to the study of intergenerational transfers in Russia and abroad; to analyze statistical data on the situation of households with children in the Russian Federation; to analyze the measures of demographic policy of the Russian Federation to support families with children; to identify the characteristics of households with children participating in the transfer exchange; to analyze individual factors that affect the receipt of private intergenerational transfers by households with children; to determine the nature of the relationship between private and public transfers to households with children. The paper uses the analysis of descriptive statistics, as well as regression analysis (models with a binary dependent variable). For the analysis, we used data from RLMS surveys conducted in 2007-2018. Among the main results of the work, the following can be highlighted: the predominant type of state transfers received are pensions and child benefits, but the share of households receiving child benefits decreases over the analyzed period, which may cause an additional need for material private intergenerational transfer assistance. Since 2014, there has been a gradual decrease in the contribution of private intergenerational transfers to the income of households with children, which may be partly explained by a drop in the growth the population income. Two children live in a household compared to one child increases the probability of receiving transfers in models of receiving transfers from parents, while living in a household of three or more children compared to living with one child reduces the probability of receiving both material and instrumental transfers in all evaluated models. As for the relationship between private intergenerational and public transfers, it can be noted that a household with children, one of whose members is a pension recipient, is more likely to receive assistance from children. Receiving money or goods from social authorities negatively affects the likelihood of receiving downward material transfers. The results of the empirical analysis can be used in the development of government measures to support families with children, not only in terms of material payments, but also in terms of other assistance. In addition, some results can be used for the development of tools for evaluating the effectiveness of state measures to support families with children.

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