Investing for the old age: pensions, children and savings: The role of children as a form of retirement saving

Published by Social Protection and Labour, World Bank in December 2008 this paper argues that the interplay of pension generosity and development of capital markets is crucial to understand fertility decisions.

Since children have traditionally represented for parents a form of retirement saving, particularly in economies with limited or non-existent capital markets, an increase of pension spending provides a saving technology alternative to children, thus relaxing financial (saving) constraints and reducing fertility.

http://siteresources.worldbank.org/SOCIALPROTECTION/Resources/SP-Discussion-papers/Pensions-DP/0838.pdf