The Residency Decision of Elderly Indonesians: A Nested Logit Analysis

This paper is the first study of which the author is aware that examines the residency decision of elderly Indonesians. It also makes a methodological contribution to the literature. The Indonesian Family Life Survey provides detailed data on the living children of a sample of elderly individuals. This allows a nested logit to be estimated which pays due respect to the role of children's characteristics in determining the residency outcome and incorporates the estimated earnings potential of the parents and their children as explanatory variables.