Old-age Support and Demographic Transition in Developing Countries. A Cultural Transmission Model
AbstractWe 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.
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Bibliographic InfoPaper provided by Geary Institute, University College Dublin in its series Working Papers with number 201307.
Length: 36 pages
Date of creation: 09 May 2013
Date of revision:
Cultural transmission; intergenerational transfers; fertility;
Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- D10 - Microeconomics - - Household Behavior - - - General
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
This paper has been announced in the following NEP Reports:
- NEP-AGE-2013-05-22 (Economics of Ageing)
- NEP-ALL-2013-05-22 (All new papers)
- NEP-CUL-2013-05-22 (Cultural Economics)
- NEP-DEM-2013-05-22 (Demographic Economics)
- NEP-DGE-2013-05-22 (Dynamic General Equilibrium)
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