Intergenerational financial supports and the mental health of the elderly in China (Preprint)
BACKGROUND With the increasing of the elderly population, the mental health problems of the elderly have attracted the attention of scholars. Although the risk factors from the adulthood of mental health have been widely explored in existing studies, how factors from both adulthood and childhood, especially financial supports received impact mental health are still unknown. OBJECTIVE This paper aims to investigate the impacts of intergenerational financial supports from both adulthood and childhood on mental health of the elderly in China. METHODS This paper collects information of 1,587 respondents who are 65 and older from two-wave data of the China Health and Retirement Longitudinal Study (CHARLS) to conduct the empirical analysis. RESULTS Our results indicate that financial supports as a whole significantly influence elderly people’s mental health. Specifically, individuals have different loneliness and depression levels due to different family financial conditions in childhood and financial supports from children in adulthood. Moreover, financial supports in adulthood negatively moderate the relationship between the family financial condition and the mental health of elderly people. CONCLUSIONS The findings point to the importance of continued inter-generational financial support in maintaining the elderly’s psychological health. Raising the retirement income or appeal to children to provide supports to the elderly can promote the mental health of the elderly, especially for these elderly people with poor family financial conditions in their childhood.