Private Financial Support beyond the Household: Who Receives and Why?

Elisenda Rentería , Centre for Demographic Studies
Maike van Damme, Centre d'Estudis Demografics (CED)

Private exchanges of financial support often continue to be strong after families split into new households, originating interhousehold transfers. These intergenerational exchanges have long been studied and are commonly linked to welfare regimes. However, despite their significance, little research has examined the recipients’ point of view in a comparative perspective between countries. Using data from EU-SILC, this paper examines households receiving interhousehold transfers in Europe, as well as looking at the role of welfare state generosity using multilevel models. At the household level, it investigates the characteristics of transfer recipients, focusing on living arrangements and housing tenure status, assessing the impact of these transfers on households’ economic well-being. At the country level, the study considers national indicators such as the GDP and public expenditure on social protection benefits. Findings highlight that age, living arrangements, and housing tenure status are key factors associated with receiving an interhousehold transfer, which changes across countries. Households in a more vulnerable situation (single parents with children, household members in poorer health, fewer employed adults, and lower incomes) have a higher probability of receiving financial support. Additionally, the traditional regional pattern observed in European countries regarding private transfers appears less distinct in this study, partly because the analysis includes a larger number of countries than in previous studies and considers households of all ages. Preliminary findings show that the relationship between social transfers and interhousehold financial transfers differs by the maximum age of the household and by the economic level of the country.

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 Presented in Session 96. Intergenerational Relations, Financial Support and Inequalities