EconPapers    
Economics at your fingertips  
 

What explains fertilit? Evidence from Italian Pension reforms

Francesco Billari () and Vincenzo Galasso ()

No 369, Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University

Abstract: Why do people have kids in developed societies? We propose an empirical test of two economic theories of fertility — children as “consumption” or “investment” good. We use as a natural experiment the Italian pension reforms of the 90s, which by decreasing expected pension benefits generated a large negative income effect, with a sharp discontinuity across workers. This policy experiment is particularly well suited, since lower future pensions are expected to have differential effects on fertility under the “consumption” and "investment" theories. Empirical analyses identify a causal, robust positive effect of less generous future pensions on postreform fertility. These findings are consistent with an “old-age security” motive also for contemporary fertility in advanced societies or with the original Becker- Lewis (1973) version of the “consumption” theory, based on the interaction between quantity and quality of children.

Date: 2010
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
ftp://ftp.igier.unibocconi.it/wp/2010/369.pdf (application/pdf)

Related works:
Working Paper: What Explains Fertility? Evidence from Italian Pension Reforms (2009) Downloads
Working Paper: What explains fertility? Evidence from Italian pension reforms (2009) Downloads
Working Paper: What Explains Fertility? Evidence from Italian Pension Reforms (2008) Downloads
Working Paper: What Explains fertility? Evidence from Italian pension reforms (2008) Downloads
Working Paper: What Explains Fertility? Evidence from Italian Pension Reforms (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:igi:igierp:369

Ordering information: This working paper can be ordered from
http://www.igier.unibocconi.it/en/papers/index.htm

Access Statistics for this paper

More papers in Working Papers from IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University via Rontgen, 1 - 20136 Milano (Italy).
Bibliographic data for series maintained by ().

 
Page updated 2020-09-22
Handle: RePEc:igi:igierp:369