Money Vs. Space? Intergenerational Transfers in a Comparative Perspective

The provision of living space as well as direct financial transfers are important elements of functional solidarity between parents and adult children. However, previous research reveals substantial discrepancies in monetary transfers and intergenerational coresidence not only within but also between countries. Against this background, the investigation addresses causes and reasons for intergenerational support in terms of money and space. We investigate (1) which parents do provide these kinds of support for their adult children, (2) whether money and space are substitutes or complements, and (3) how one can explain national differences.

Using the Survey of Health, Ageing and Retirement in Europe (SHARE), influences of individual, familial and societal factors are analyzed for 14 countries. The empirical results, based on logistic multilevel models, indicate that especially needs of the adult child as well as opportunities of the parents are important determinants of intergenerational solidarity. In contrast, competing family members reduce support probabilities for each individual. Parents in familialistic and low-level service countries such as Poland, Italy and Spain predominantly support their adult children by providing living space, whereas in less familialistic and more generous welfare states such as the Netherlands, Denmark and Sweden parents rather offer monetary support. Furthermore, the provision of living space seems to substitute direct financial transfers.