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

Year: 2025

Type: article

Abstract: • We study how grandmothers' pension eligibility affects their daughters' fertility. • An Australian pension reform increased women's eligibility age by 7 years. • The reform increased labour supply and reduced grandmothers' childcare support. • We find that this led to a decline in daughters' fertility rates. • Findings reveal the intergenerational impact of pension reform on fertility. 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.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112239

Authors: Pelin Akyol, Kadir Atalay

Institution: The University of Sydney

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,030