It is known that the education of significant others may affect an individual's mortality. This paper extends an emerging body of research by investigating the effect of having highly educated adult children on the longevity of older parents in Europe, especially parents with low educational attainment. Using a sample of 15,015 individuals (6,620 fathers and 8,395 mothers) aged 50 and above, with 1,847 recorded deaths, over a mean follow-up period of 10.9 years from the Survey of Health, Ageing and Retirement in Europe (SHARE), we examine whether the well-established socio-economic gradient in mortality among parents is modified when their adult children have higher educational attainment than their parents. We find that having highly educated adult children is associated with reduced mortality risks for fathers and mothers with low educational attainment, compared to their counterparts whose adult children have only compulsory education. The association is stronger in early older age (ages 50–74) than in later older age (ages 75 and over). Part of the association appears to be explained by health behaviours (physical (in)activity) and health status (self-rated health). Our findings suggest that the socio-economic–mortality gradient among older parents might be better captured using an intergenerational approach that recognises the advantage of having highly educated adult children, especially for fathers and mothers with only compulsory education.

Childless individuals are often depicted as ‘selfish’ as they opt out of raising children in favour of investing resources in themselves. Yet no research has investigated whether this claim holds in domains of social life such as intergenerational family support. Using data from the Generations and Gender Survey for 11 European countries, this article examines differences between childless and non-childless individuals in the provision of financial, practical and emotional transfers to their elderly parents. Results support the idea that the childless are more prone to provide upward support than individuals with children. Specifically, estimates from multivariate logistic regression and propensity score specifications suggest that, ceteris paribus, childless adults are about 20–40 per cent more likely to provide support to their parents, with the association driven by transfers to elderly mothers. These findings enrich the literature on childlessness and ageing, and support the view that researchers and policy makers should take into more consideration not only what childless people receive or need in old age, but also what they provide as middle-aged adults.

Understanding patterns of intergenerational support is critical within the context of demographic change, such as changing family structures and population ageing. Existing research has focused on intergenerational support at a given time in the individuals' lifecourse, e.g. from adult children towards older parents and vice versa; however, few studies have focused on the dynamic nature of such support. Analysing data from the 1958 National Child Development Study, this paper investigates the extent to which the receipt of parental help earlier in the lifecourse affects the chances of adult children reciprocating with support towards their parents later in life. The findings show that three-quarters of mid-life adults had received some support from their parents earlier in life, and at age 50 more than half were providing care to their parents. Patterns of support received and provided across the lifecourse differ markedly by gender, with sons being more likely to have received help with finances earlier in the lifecourse, and daughters with child care. The results highlight that care provision towards parents was associated with support receipt earlier in life. However, the degree of reciprocity varies according to the type of care provided by children. Such findings have implications for informal care provision by adult children towards future cohorts of older people, and by extension, the organisation of social care.

Since the seminal work of Becker, the dynamics of endogenous fertility has been based on the trade-off faced by parents between the quantity and the quality of their children. However, in developing countries, where child labor is an indispensable source of household income, parents actually incur a negative cost by having an extra child, so that the trade-off disappears. The purpose of this paper is to restore the Beckerian quantity–quality trade-off when intergenerational transfers are upstream, in order to keep fertility endogenous. We do that by adding a negative “sibship size effect” on human capital formation to the standard Becker model. With a simple specification, we obtain multiplicity of steady states or, more fundamentally, the possibility of a jump from a state with high fertility and low income to a state with low fertility and high income, triggered by a continuous increase in the productivity of human capital formation.

The exchange of informal support within the social network plays a vital role in enabling older adults to remain living in the community as they age. Following spousal loss in later life, the exchange of instrumental support is of particular importance in order to meet the practical and financial needs of the bereaved spouse. Adult children are typically the primary source of social contact and informal support for older widowed adults following bereavement. However, very little is known of the longitudinal changes that occur in the exchange of instrumental support with children during the transition to late-life widowhood. Trajectories and predictors of change in material and time support exchange in parent–child relationships were modelled over a 15-year period for 1,266 older adults (mean age 76.7 years). Widowed older adults received more material and time support from their children than their married peers. Proximity to children, age at spousal loss, self-rated health, cognitive functioning and income were predictive of levels of exchanged instrumental support in late-life widowhood. Short-term reciprocity appears to continue in parent–child relationships during late-life widowhood. The implications of the findings for policy and practice are discussed, including the role of children in the support networks of older widowed adults and the potential difficulties faced by those who do not have access to informal avenues of support.

We study the microeconomic and macroeconomic effects of longevity insurance. Using a tractable discrete-time overlapping-generations model of a closed economy we first study different types of government redistribution of accidental bequests in general equilibrium. Individuals face longevity risk, as there is a positive probability of passing away before the retirement period. We find nonpathological cases where it is better for long-run welfare to waste accidental bequests than to give them to the elderly. Next we study the introduction of a perfectly competitive life insurance market offering actuarially fair annuities. There exists a tragedy of annuitization: although full annuitization of assets is privately optimal, it is not socially beneficial, because of adverse general equilibrium repercussions.

Financial support and practical help between older parents and their middle-aged children vary greatly among the regions of Europe. Northern and Western Europe is characterised by a high likelihood of practical help to and financial transfers from parents, while in Southern and Eastern Europe these kinds of support are much less likely. Financial transfers to parents show an almost opposite distribution, with more children supporting a parent in Southern and Eastern welfare regimes. Using the second wave of the Survey of Health, Ageing and Retirement in Europe encompassing 14 European countries conducted in 2006–07, these country differences can be linked to different social policies. Controlling for different aspects of country composition in terms of individual characteristics and family structures impacting on intergenerational support, it was found that the more services and transfers provided publicly, the more people aged 50 or more years helped their older parents sporadically, and the less monetary support they provided. On the other hand, generous public transfers enabled parents aged 64 or more years to support their offspring financially. Thus, neither ‘crowding in’ nor ‘crowding out’, but a modification of private transfers depending on public transfers and vice versa is found, suggesting a specialisation of private and public support.

We study labor-income and consumption taxation in an overlapping-generations model featuring endogenous growth due to interfirm investment externalities. Consumption, saving, and labor supply display life-cycle features because mortality and labor productivity are age-dependent and because annuity markets may be imperfect. The government's method of revenue recycling critically affects the growth consequences of taxation. Purely consumptive government spending has a negative impact on growth. Redistribution of tax revenue from dissavers to savers may lead to an increase in growth due to beneficial intergenerational transfer effects.

This article uses a comprehensive theoretical framework to explain why parents send money to particular children, and examines whether intergenerational solidarity is shaped by spending on various welfare domains or provisions as a percentage of gross domestic product. The theoretical model at the level of parents and children distinguishes parental resources and children's needs as the factors most likely to influence intergenerational money transfers. Differences in state spending on various welfare domains are then used to hypothesise in which countries children with specific needs are most likely to receive a transfer. For parents we hypothesise in which countries parents with specific available resources are most likely to send a transfer. We use data from the first wave of the Survey of Health and Retirement in Europe (SHARE) to analyse the influence of welfare-state provisions on the likelihood of intergenerational transfers in ten European countries. The results indicate that, in line with our expectations, the likelihood of a transfer being made is the outcome of an intricate resolution of the resources (ability) of the parents and the needs of a child. Rather large differences between countries in money transfers were found. The results suggest that, at least with reference to cross-generational money transfers, no consistent differences by welfare state regime were found.

What motivates grandparents to their altruism? We review answers from evolutionary theory, sociology, and economics. Sometimes in direct conflict with each other, these accounts of grandparental investment exist side-by-side, with little or no theoretical integration. They all account for some of the data, and none account for all of it. We call for a more comprehensive theoretical framework of grandparental investment that addresses its proximate and ultimate causes, and its variability due to lineage, values, norms, institutions (e.g., inheritance laws), and social welfare regimes. This framework needs to take into account that the demographic shift to low fecundity and mortality in economically developed countries has profoundly altered basic parameters of grandparental investment. We then turn to the possible impact of grandparental acts of altruism, and examine whether benefits of grandparental care in industrialized societies may manifest in terms of less tangible dimensions, such as the grandchildren's cognitive and verbal ability, mental health, and well-being. Although grandparents in industrialized societies continue to invest substantial amounts of time and money in their grandchildren, we find a paucity of studies investigating the influence that this investment has on grandchildren in low-risk family contexts. Under circumstances of duress – for example, teenage pregnancy or maternal depression – there is converging evidence that grandparents can provide support that helps to safeguard their children and grandchildren against adverse risks. We conclude by discussing the role that grandparents could play in what has been referred to as Europe's demographic suicide.

With the increase of childlessness in European societies, its consequences have become a matter of concern. Studies in this field, however, have concentrated on what childless people lack and need in terms of social, financial and moral support. In contrast, this article focuses on what childless people give to their families, friends, unrelated others and to society at large. Using 2004 data on social support and financial transfers given and received by people aged 50 or more years in ten European countries from the Survey of Health Ageing and Retirement in Europe (SHARE), the analyses show that the support networks of childless older people tend to be somewhat weaker than those of parents and that links with members of the younger generations in the family are stronger for parents than for those without children. The results also indicate, however, that the differences in transfer behaviour between parents and childless adults are small, and that the support networks of the childless are more diverse than those of parents, and characterised by stronger links with ascendants and lateral relatives and with non-relatives. Moreover, people without children tend to be more intensely involved in charities and comparable organisations.

In this introductory article for the special issue on Childlessness and Intergenerational Transfers, we first discuss the prior research literature and then overview the presented contributions. Up to now, childless older adults have been treated for the most part as both homogeneous and a problematic group. This does not do justice to the different pathways to childlessness: there are those who actively forgo having children, those who defer births so long that they involuntarily become childless, and those who are not fecund or lack a partner. It also neglects the changing social profile of the childless, e.g. the shift from less educated to more highly-educated women. Most importantly, it fails to recognise what childless older people give to others. The studies presented here aim to redress these two deficits in previous research. They examine how the consequences of childlessness are mediated by the pathways to and motivations for being childless and by factors such as gender, education and marital history, and they also examine what childless older adults provide to their families and to society at large. Such adults establish strong linkages with next-of-kin relatives, invest in non-family networks, and participate in voluntary and charitable activities, and broadly do so to a greater extent than older people with surviving children.

This paper investigates the quantitative importance of different savings motives on the distributions of wealth and consumption and aggregate capital accumulation by solving an overlapping generations model with intragenerational heterogeneity. Agents differ in age, ability, earnings shocks, and inherited bequests. In the baseline economy, there are uninsurable idiosyncratic risks associated with uncertain lifetime and earnings shocks. The model is calibrated to the U.S. economy and solved numerically. Then the allocations of the baseline economy are compared with those of an economy with complete annuity markets, one without earnings uncertainty, and one without altruism.