Old-age Support and Demographic Transition in Developing Countries. A Cultural Transmission Model

Javier Olivera

No 201307, Working Papers from Geary Institute, University College Dublin

Abstract: We model intergenerational old-age support within the context of a developing country that faces demographic transition: declining fertility and increasing life expectancy. We attempt to answer if agents will be able to support their parents during the next generations and under what conditions. For this purpose we use a three period overlapping generations model and a cultural transmission process, in which agents may be socialized to different cultural family models (old-age supporters and non-supporters). As life expectancy increases, we find conditions under which a reduced fertility rate is compatible with the expectation to be supported during old-age. This offers an additional explanation for the persistency of family old-age support in developing countries facing demographic transsition.

Keywords: Cultural transmission; intergenerational transfers; fertility (search for similar items in EconPapers)
JEL-codes: D10 E24 J13 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2013-05-09
New Economics Papers: this item is included in nep-age, nep-cul, nep-dem and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:ucd:wpaper:201307

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