| ABSTRACT:Aging is an important issue in China nowadays. In rural areas, because of the lag of social security system, he elderly mostly rely on children to support them. Living with children, the elderly can obtain direct living care and feeling comfort from children. Living arrangement can not only present the living demand of the elderly, but also has great impact to the welfare of the elderly. This paper uses data from "China Health and Retirement Longitudinal Survey (CHARLS)" to investigate the factors influencing living arrangement in rural China. Our empirical results show that, the elderly who are widowed or in poorer health conditions or have low level of ADL are more likely to live with their children, while the elderly who have no independent income are not more likely to live with their children. These findings suggest that, the elderly live with their children not to obtain economic support but to direct care or feeling comfort. I compare the factors affecting living arrangement among the elderly with different ages and also investigate the impact of living preference on living arrangement. Moreover, this paper also finds that there are "peer effects" in the living arrangement in rural China. Nowadays, family planning has caused the reduction of family scale. Moreover, millions of rural people migrant to urban areas. These both result into the recession of family resources provided for the aged. Therefore, at this background, improving the aging security system, progressing care and aid service for the aged and combining the aging support by family, community and institutions in rural areas will have great importance.
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