Unravelling upward intergenerational transfers as a manifestation of filial piety in Indonesia

Upward intergenerational transfers have increased in Europe and Asia due to aging populations, reflecting cultural values such as filial piety, including in Indonesia. This study examines the relationship between the well-being of adult children and their parents in Indonesia, using both objective and subjective measures. Data from the Indonesian Family Life Survey (IFLS), comprising 3,113 parent-child dyads who lived in poverty in 1993, were analyzed using Generalized Structured Component Analysis (GSCA). The results indicate a positive correlation between the well-being of adult children and their parents. Parents receiving upward transfers report higher subjective well-being and increased purchasing power. These findings suggest that upward intergenerational transfers play a significant role in improving parents' subjective well-being and financial stability.