The authors develop an overlapping-generations model of endogenous growth in which human capital is the engine of growth and the generations are linked through material and emotional interdependencies within the family. Parents invest in their children to achieve both old-age support (care) and...

The authors show that a defined-benefits pay-as-you-go (PAYG) social security system distorts key family-based choices that affect economic growth. They identify human capital as the engine of growth, and the motivating forces linking the family's overlapping generations as mutually productive...