Dynamics of Intergenerational Assistance in Middle- and Old-Age in Mexico

Rebeca Wong, University of Maryland
Monica Espinoza, Princeton University

We use data from the New Mexican Health and Aging Study (MHAS/ENASEM) 2001 and 2003, to describe the changes in time of the patterns of private inter-vivos transfers of population aged 50+ in Mexico. In a previous paper, we described patterns of transfers using the 2001 baseline. This paper extends that work with a description of the 2-year changes, using descriptive as well as multivariate techniques. We focus on transfers to- and from-children, of two different types: monetary and in-time, and make emphasis on living arrangements. We pay particular attention to whether the dynamics of transfers respond more to health needs or to economic ability. This focus is particularly relevant in the context of developing countries; like many societies, Mexico is characterized by scarce or inactive financial markets and limited institutional support for old age. We draw conclusions and make comparisons with the literature regarding the dynamics of transfers in developed countries.