European Business Schools Librarian's Group
Department of Economics Working Papers,
Vienna University of Economics and Business, Department of Economics
Can I live with you after I retire? Retirement, old age support, and internal migration of older adults in China
Simiao Chen (), Zhangfeng Jin () and Klaus Prettner ()
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Simiao Chen: Heidelberg Institute of Global Health, Heidelberg University
Zhangfeng Jin: College of Economics, Zhejiang University
Klaus Prettner: Department of Economics, Vienna University of Economics and Business
Abstract: This study examines the causal impact of retirement on migration decisions. Using a regression discontinuity (RD) design approach, combined with a nationally representative sample of 228,855 Chinese older adults, we find that retirement increases the probability of migration by 12.9 p.p. (an 80% increase in migration). Approximately 38% of the total migration effects can be attributed to inter-temporal substitution. Retirement-induced migrants are lower-educated, have restricted access to social security, and come from origins with high living costs. Relying on old age support from adult children in migration is a likely mechanism. These findings are consistent with a simple theoretical model of migration for older adults.
Keywords: Retirement, Internal migration, Old age support, China, Regression discontinuity design
JEL-codes: J14; J26; J61 October 2020
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