Jurnal Ekonomi Malaysia
52 (1) 2018 157 – 168
Computational and Theoretical Sciences
Kulliyyah of Science
International Islamic University Malaysia
25200 Kuantan, Pahang
MALAYSIA
Department of Economics
Faculty of Business Administration
Princess Nourah Bint Abdulrahman University
Riyadh 11671
SAUDI ARABIA
Abstract
This research analyzes the linkage between elderly poverty and children’s human capital level via income distribution, in which fertility decisions are motivated by old-age support with the assumption that the parents are non-altruistic. The paper provides a mathematical model looking at the relationship of old age poverty and the children human capital level with intrinsic motivation. Under the assumption that the parents depend solely on the children as the source of income in old age, the paper applies the overlapping generation model by incorporating intrinsic motivation. This study shows that, in the absence of public education, parents who choose not to invest in the private education of their children will be locked in a poverty trap. However, children with higher motivation show an improvement in their human capital evolution, and, thus, help the parents escape the poverty trap regardless of the parental economic status.
Keywords
Author’s Acknowledgement
This paper is a part of the author’s PhD dissertation work at Universiti Kebangsaan Malaysia. We would like to thank the university and all the people involved in the completion of the dissertation. We also would like to thank Dr. Suhaili Alma’amun and Prof Dr. Abdul Ghafar Ismail for their valuable feedback on the writing of this article.
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Bibliography
@article{salleh2018human,
title={Human Capital, Intrinsic Motivation and Poverty of Elderly in Later Life},
author={Mat Salleh, Supian and Halid, Noreha},
journal={Jurnal Ekonomi Malaysia},
volume={52},
number={1},
pages={157—168},
}
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