Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/30500
Authors: 
Billari, Francesco C.
Galasso, Vincenzo
Year of Publication: 
2009
Series/Report no.: 
CESifo working paper 2646
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.
Subjects: 
old-age security
public pension systems
fertility
altruism
JEL: 
H55
J13
D64
Document Type: 
Working Paper

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