Fertility impact of social transfers in Sub-Saharan Africa - What about pensions

Abstract

The potential link between child-related cash transfers and increased fertility is often raised asan issue of concern when debating their use. Old-age pension is a form of cash transfer wheretheory would suggest the opposite impact, i.e. pensions equal decreasing fertility. A handful ofSub-Saharan African countries have introduced non-contributory social pensions that cover thegreat majority of the older population. It makes them into a distinct group in relation to the rest ofthe region where public old-age security arrangements, if existing at all, are largely reserved forthe formal sector. This paper attempts to trace any impact these high-coverage pensionschemes may have had on fertility. Findings suggest that there has been such an impact, in therange of 0,5 to 1,5 children less per woman depending on model specification.