It is difficult to discern a clear pattern to reported expectations from children,<sup>other than</sup> the rural/urban disparities one might expect from a review of the literature.<sup>3 7</sup> While<sup>47%</sup> of respondents from rural areas expected to live with a son or a daughter in their<sup>oldage,</sup> only 19% of urban respondents held the same expectation. Similarly, rural<sup>respondents</sup> seem more confident that they would receive some sort of care from their<sup>children,with</sup> 670io giving an affirmative response, and only 14% unsure. Only 17% of rural respondents did not expect to be cared for by their children. Urban respondent,<sup>on the</sup> other hand, were more evenly distributed between those that expected care<sup>fromtheir</sup> children (34%), those that did not (30%), and those that did no know (19%).<sup>When asked</sup> why they did not expect either a son or daughter to care for them<sup>(28%ofall</sup> respondents), the answer most frequently given by respondents was that<sup>they did not want</sup> to become a burden. The impact of parents' expectations on the likelihood<sup>thatthey</sup> contribute to the formal pension system is examined more closely in the<sup>next section.</sup> Finally, respondents to the survey were asked the age at which they expected<sup>to die.I use</sup> their responses to construct subjective measures of life-expectancy that<sup>actasa proxies</sup> for the perceived probability of the bad-state.<sup>3 8</sup> I constructed the subjective life expectancy variable (SLIFEX) by subtracting the respondents age<sup>at thetimeof the</sup> survey from their predicted age of death. Similar studies of savings and retirementincome security using data from the United States by Hurd and McGarry,<sup>(1997),and</sup> Hurd, McFadden & Gan, (1998) also make extensive use of subjective<sup>life expectancy.</sup> A brief analysis of what drives respondents' survival expectations<sup>isilluminating.</sup> Regressions of the dependent variable SLIFEX on a number of explanatory<sup>variables,are</sup> shown separately for men and women in Table 7. After controlling for<sup>the averagelife</sup> expectancy predicted by a mortality table for Chile,<sup>39</sup> respondents with<sup>moreeducation</sup> expect to live longer. Both objective and subjective indicators of the respondent's<sup>health</sup> - how many cigarettes they smoke in a month (SMOKER),<sup>4 0</sup> whether<sup>theyhad been</sup> hospitalized in the last two years (HOSP), and their reported likelihood<sup>offallingill</sup> 37 Alderman and Paxson, (1992), Hoddinott, (1992), Deaton, (1990 and<sup>1997),Cox, Eser and Jimenez,</sup> (1998) 38 A more exact proxy for the perceived probability of the bad state in this context<sup>wouldbe respondents'</sup> expected period of "retirement", strictly defined as a the period prior to death<sup>when theyare unableto earn</sup> an income from work. The PRIESO asked respondents the age at<sup>which theythoughtthey would not</sup> longer be able to work, and an "expected retirement" variable can be constructed<sup>fromthe data.However,</sup> there is evidence in the data that many respondents took "ability<sup>towork" toreferliterallytotheir</sup> intentions to work outside the household, and, therefore, that the phrasing of<sup>thequestionmayhave been</sup> biased against inactive women who never considered the possibility.<sup>Forthis reason,whiletheexpected</sup> retirement variable behaves similarly to subjective life expectancy<sup>in</sup> the<sup>model,I preferusing the latter.</sup> 39 To calculate the mean "objective" life expectancy I used the World<sup>Bank's</sup><sup>_Pension ReformOptions_</sup> _Simulation Tool_ (PROST) and a life table for Chile.

401 included the continuous variable SMOKER, guided by Becker and<sup>Murphy (1988), EhrlichandChuma,</sup> (1990), Chaloupka (1991), and Becker and Mulligan (1997) who formalize<sup>the a theoreticallink between</sup> smoking, myopia and future expectations, as well as by the empirical<sup>findingsofFuchs(1986)who</sup> explores the relationship between inter-temporal choice, myopia, health<sup>behavior(smoking),and health</sup> status.

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