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The intergenerational impact of pension reforms: How grandmothers’ pension eligibility affects daughters’ fertility

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  • Akyol, Pelin
  • Atalay, Kadir

Abstract

This paper provides causal evidence on how changes in pension eligibility for women influence maternal grandmothers’ capacity to provide informal childcare and their daughters’ fertility decisions. Leveraging an Australian reform that raised the pension eligibility age by seven years, we show that the reform significantly increased the likelihood of grandmothers delaying retirement, thereby reducing their ability to provide childcare. As a result, we observe a decline in fertility rates among their daughters, particularly in lower-wealth households where financial constraints are more pronounced. Our findings highlight the intergenerational impacts of pension reform, revealing a clear link between grandmothers’ pension eligibility and fertility outcomes in the next generation.

Suggested Citation

  • Akyol, Pelin & Atalay, Kadir, 2025. "The intergenerational impact of pension reforms: How grandmothers’ pension eligibility affects daughters’ fertility," Economics Letters, Elsevier, vol. 248(C).
    • Handle: RePEc:eee:ecolet:v:248:y:2025:i:c:s016517652500076x
    DOI: 10.1016/j.econlet.2025.112239
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    More about this item

    Keywords

    Pension reforms; Fertility; Intergenerational transfer;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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