Institutional Pension Insurance in Sustainable Development of Urban–Rural Intergenerational Support

Abstract

Parental downward support plays an important role in urban and rural sustainable development. It is of great significance to study parental downward transfers and their motivation. However, there is no consensus on the motivation behind parental downward transfers in China. This study examines the timing and monetary impacts of social pensions on parental downward transfers and assesses the motivations behind them. We found that pension insurance encouraged rural parents to provide time and monetary support to their children. Unlike rural parents, pension insurance increased the monetary support of urban parents but inhibited their time support. Because of the higher income level of urban parents and the better organization of the domestic service market, parents have the motivation and conditions to reduce their time support and increase monetary support. Our findings highlight the importance of parental downward transfers in urban and rural sustainable development.