Giving to family versus giving to the community within and across generations

Abstract

In this paper, we examine the impact of parental giving on the transfer behavior of adult children to family members and community institutions using unique data from the Indonesian Family Life Surveys. Our findings point to persistence of private transfer networks across generations. In particular, the community transfer decisions of adults living outside origin households are positively influenced by the origin household's community giving. We also investigate the relationship between household transfers to family and community networks. We find that unobserved heterogeneity in giving to family members and community organizations is positively correlated, suggesting important complementarities between transfer networks. © Springer-Verlag 2008.