INTERGENERATIONAL SUPPORT AND THE LIFE-CYCLE INCOMES OF YOUNG MEN ANDTHEIR PARENTS - HUMAN-CAPITAL INVESTMENTS, CORESIDENCE, AND INTERGENERATIONAL FINANCIAL TRANSFERS

This article examines the resource allocations of parents in the form of both shared residence with and financial transfers to their young a dult sons. Based on an overlapping generations model incorporating a g ame between parents and adult children, estimates of the determinants of such transfers are obtained from the kinship-linked cohorts of the National Longitudinal Surveys. The estimates suggest that both types o f parental assistance are as important as governmental transfers in su pporting young men and are responsive to the current and anticipated e arnings of their offspring, suggesting that young men cannot adequatel y smooth their consumption without parental help.