Can I live with you after I retire? Retirement, old age support and internal migration in a developing country

Abstract

AbstractThis study provides causal evidence on the impact of retirement on internal migration in a developing country. Using a fuzzy regression discontinuity design, combined with a nationally representative sample of 228,855 older Chinese adults, we find that retirement leads to an increase in the probability of being a migrant by 12.9 percentage points (an 80% increase in migration). Approximately 38% of the total migration effects can be attributed to intertemporal shifts. The impact is more pronounced for the lower‐educated, those who have restricted access to health insurance and pension and those who come from origins with high accommodation costs. Relying on old age support from adult children in migration is a likely mechanism. Lifting migration restrictions and improving government‐provided benefits for retirees could be helpful to cope with population aging in a developing country.