An index measuring the degree of resource sharing between adult-child and parent households: EFA and CFA approaches

The primary aim of the present study is to develop an index that measures the degree of resource sharing between adult child and parent households. As a first step, we review the literature concerning the definition of households and intergenerational solidarity. Subsequently, through in-depth interviews, we construct 18 survey questions. To create a sharing index, a survey is implemented with 500 adult child households living within a 30-min distance from their parents in Seoul and Gyoengi Provinces. Exploratory factor analysis and confirmatory factor analysis were conducted with the collected data, resulting in the derivation of sharing index from two sub-factors based on 17 observed items. The validation of this index yields consistent results with the two survey item on “shared daily life with parent household” and “shared livelihoods with parent household”. By applying the index to recalculate the poverty rate, we discover that the income distribution indicator of parent households could improve by approximately 12-35%. Empirical results suggest the potential utility of this index. The significance of this study lies in exploring the feasibility of developing an index to measure the extent of resource sharing between parent-adult child households.