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Journal of Family Issues
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What Accounts for Race and Ethnic Differences in Parental Financial Transfers to Adult Children in the United States?

Brent Berry

University of Toronto, Ontario, Canada

Financial assistance that parents give to their young adult children is part of the bundle of flows that constitutes intergenerational support. Are there racial and ethnic differences in this financial assistance, and if so, why? Wave 2 data from the Health and Retirement Study (N = 17,996) suggest group differences in both the incidence and amount of annual support given to nonresident adult children. Structural inequalities in the form of economic resources, family structure, and health account for most group differences, a finding counter to recent research emphasizing culture and behavioral practices. Economic resources most strongly account for less giving in African American families than in other groups. For Latinos, income and parental education are most vital. Parental health and family size are also important predictors of group differences. African American and Latino families help compensate for the differences in financial transfers with coresidence, extended family exchange, and proximity.

Key Words: intergenerational transfers • racial differences • Health and Retirement Study • health • wealth

Journal of Family Issues, Vol. 27, No. 11, 1583-1604 (2006)
DOI: 10.1177/0192513X06291498
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