Are children substitutes for assets? Evidence from Bangladesh
Key researcher
- Ummul Ruthbah
Description
In many developing countries, children are considered a source of old-age insurance. They help parents smooth consumption by sending remittances when they are old and have relatively low incomes. The paper presents a model where asset accumulation and children are substitutes. Using a family planning programme as an instrument for fertility shows that households exposed to the programme have (0.86) lower fertility and $994 more worth of assets than those who were not exposed to the programme.