New rural pension scheme, intergenerational exchange, and intergenerational economic support of the rural elderlies: a study from the perspectives of classical altruism theory and exchange motivation theory

As the severity of rural old-age care in China becomes increasingly evident, the manner in which rural elderly individuals obtain economic support has emerged as a significant societal concern. Central to this paper is the question of whether the new rural pension scheme, as the first government-provided institutional pension, influences the longstanding intergenerational economic support within families. Drawing upon classic altruism theory and exchange motivation theory, this study analyzes the complex rural social reality in China. Using data from the China Health and Retirement Longitudinal Study (CHARLS) for the years 2013 and 2015, we employ a two-part model to examine the policy effects of new rural pension scheme, as well as the 2014 pension insurance reform and pension increase. Our findings reveal that (1) altruism and exchange motivation coexist in the rural Chinese social reality and jointly influence the behaviors of rural families. (2) Intergenerational economic support for the elderly in rural Chinese families primarily depends on the exchange motivation aspect of intergenerational care. Thus, it is vital to strengthen the intergenerational support of the family in addressing the pensions of the elderly in rural China.