Intra-Generational upward mobility and fertility: evidence from transition countries

We examine the role of intra-generational upward mobility (hereafter upward mobility) in determining the fertility of transition countries. Upward mobility can increase fertility through a positive income effect. It can also reduce the value of children’s support during parents’ elderly years as parents expect to have more resources in the future. Transition countries have experienced large socio-economic changes since the early 1990s and have highly varied economic conditions, including upward mobility. Using data from the Life in Transition Survey, we find that upward mobility increases fertility and the effect is robust to different model specifications. This result is consistent with a dominating income effect. Our findings point out the importance of considering upward mobility to boost fertility which has significant implications for demographic policy.