What Explains Fertility? Evidence from Italian Pension Reforms

Francesco Billari and Vincenzo Galasso
Authors registered in the RePEc Author Service: Tullio Jappelli ()

CSEF Working Papers from Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy

Abstract: Why do people have kids in developed societies? We propose an empirical test of two alternative theories — children as “consumption” vs. “investment” good. We use as a natural experiment the Italian pension reforms of the 90s that introduced a clear discontinuity in the treatment across workers. This policy experiment is particularly well suited, since the “consumption” motive predicts lower future pensions to reduce fertility, while the “old-age security” to increase it. Our empirical analysis identifies a clear and robust positive effect of less generous future pensions on post-reform fertility. These findings are consistent with “old-age security” even for contemporary fertility.

Keywords: old-age security; public pension systems; fertility; altruism (search for similar items in EconPapers)
JEL-codes: D64 H55 J13 (search for similar items in EconPapers)
Date: 2008-11-28
New Economics Papers: this item is included in nep-age
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: What explains fertilit? Evidence from Italian Pension reforms (2010)
Working Paper: What Explains Fertility? Evidence from Italian Pension Reforms (2009)
Working Paper: What explains fertility? Evidence from Italian pension reforms (2009)
Working Paper: What Explains Fertility? Evidence from Italian Pension Reforms (2008)
Working Paper: What Explains fertility? Evidence from Italian pension reforms (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:sef:csefwp:209

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