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Fertility and old age security in an overlapping generations model.

T N Srinivasan

    Journal of Quantitative Economics : Journal of the Indian Econometric Society
    |January 1, 1988
    PubMed
    Summary

    Parents seeking old-age support through children do not necessarily increase fertility beyond optimal levels. Infant mortality changes may also not impact fertility rates under specific conditions.

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    Area of Science:

    • Demography
    • Economics
    • Sociology

    Background:

    • Parents historically relied on children for old-age financial support.
    • Societal structures for elder care are evolving, impacting traditional family dynamics.

    Purpose of the Study:

    • To analyze the effect of the desire for old-age support on fertility rates.
    • To compare fertility outcomes under different elder support systems.

    Main Methods:

    • Theoretical economic modeling.
    • Comparative analysis of two distinct old-age support systems: familial contributions versus societal allocation.

    Main Results:

    • The study found no theoretical basis to support the claim that the old-age security motive inherently leads to higher fertility than socially optimal levels.
    Keywords:
    Comparative StudiesConsumptionDemographic FactorsEconomic FactorsFertilityFinancial ActivitiesFinancing, GovernmentInfant MortalityMacroeconomic FactorsMicroeconomic FactorsMortalityOld Age SecurityPopulationPopulation DynamicsResearch MethodologySocial SecurityStudiesWorld

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  • Under specific assumptions regarding parental preferences, changes in infant mortality do not influence fertility.

    • Conclusions:

    • The desire for old-age security does not automatically equate to higher-than-optimal fertility.
    • Fertility decisions may be less sensitive to infant mortality than previously assumed under certain preference structures.