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