Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 100 Page 101 Page 102 Page 103 Page 104 Page 105 Page 106 Page 107 Page 108CHAPTER 4 81 more likely to receive a financial transfer from their parents, and on average received $300 more than their siblings who were in the highest income categories. The researchers also found other factors that influenced parents’ decisions: parents were more likely to give to younger chil- dren than older children; less likely to give money to children who were married, had children of their own, or owned their own homes; and more likely to give to children who lived within 10 miles of their parents or who had less education. Housing Transfers Geographic proximity of older parents to adult children is related to opportunities for intergen- erational transfers. In 2002, 11 percent of HRS participants’ households included a resident child whether or not to give money to their children— and how much to give. In 2002, participants were asked if they had given $500 or more to any of their children during the prior two years. More than one-third (36 percent) of participants said they had. The likelihood of giving money to chil- dren decreases as the age of parents increases (Figure 4-5); 43 percent of parents ages 55 to 64, compared with 24 percent of parents age 85 and older, provided such financial support. The amount parents give to their children varies by the children’s financial situations. Analysis of data for participants age 70 and older indicated that parents were more likely to give money to children in lower versus higher income brackets (McGarry and Schoeni 1997). Adult children in the lowest income category were 50 percent Disability and care are not static, as the ability to provide care and the need for care change often. Freedman et al. (2004) used data for unmarried participants age 70 and older to examine how care requirements change over time. The study found that both paid and unpaid care hours re- ceived by older, unmarried, community-dwelling participants increased during the 1990s. How- ever, trends in care hours differed according to shifts in ADLs versus instrumental activities of daily living (IADLs). Responses to ADL changes were fairly symmetric, in that care hours in- creased as disability worsened and decreased as people recovered function. With IADLs, both paid and unpaid care hours increased with the number of IADL limitations, but paid hours (and, to a lesser extent, unpaid care hours) did not decrease as IADLs improved. Another factor in the care equation is the policy and service environment surrounding the provision of long-term care. The Federal–State Medicaid program funds the largest share of formal long- term care services, but individual States determine their own eligibility criteria, payment levels, and other program characteristics. One examination of HRS results suggested that in States with strong commitments to home- and community-based services, older adults who needed help with one or more ADLs were more likely to receive services that allowed them to remain in the community rather than entering nursing homes (Muramatsu et al. 2004). Therefore, the researchers concluded, although family resources and caregiving are still paramount in determining long-term care use, the effect of these resources on nursing home admis- sion depends on the long-term care context of one’s State of residence. Transfers of Money Research using HRS data has shown that a child’s financial situation affects parents’ decisions about FIG. 4-5 households that gave at least $500 to their child(ren) between 2000 and 2002, by age of respondent (In percent) Note: Age for households with couples is based on the man’s age. 55-64 65-74 75-84 85+ 0% 10% 20% 30% 40%