An Old-Age Security Motive for Fertility in the United States?

Abstract

This study reviewed the literature on the old age security motive for childbearing and estimates the poverty alleviating contributions of a coresident family to the elderly in the US. Data were obtained from the 1984 Panel of the Survey of Income and Program Participation (SIPPS) of the US Census Bureau the National Survey of Informal Caregivers and the 1982 National Long-Term Care Survey. In 1984 poverty among the elderly dropped below the overall US rate. The sample included 2383 unmarried elderly aged over 65 years in 1984. Financial resources include more options than that provided in official poverty measures. Analysis reveals that the combined financial and functional care provided by coresident relatives kept about 1.3 million elderly (11.0% of all unmarried elderly) from falling into poverty. 50% of the poverty would be due to functional assistance alone. Without this family support the unmarried elderly poverty rate would have doubled to 24.3%. Without coresidence financial and functional assistance almost 50% (44.7%) of disabled unmarried elderly would be poor. Only 14.3% were observed to be poor in 1984. 1 in 3 were kept out of poverty by family members. 59.7% of severely disabled would be poor. 21.2% of Black elderly 9.7% of White elderly and 15% of elderly with under 12 years of schooling would be poor without family assistance. Findings highlight the inadequacies in public support programs for old age security and the cogency of persons choosing childbearing as the best insurance against lower lifetime earnings and security.