Economist Clara E. Piano discusses the impact of economic freedom on women's fertility desires and the challenges individuals face in achieving their desired number of children. The podcast explores how housing regulations, cultural norms, and urban planning influence parenting decisions, while also discussing the complexities of pro-natal policies and proposed solutions to tackle fertility challenges.
Economic freedom impacts fertility choices, with women desiring more children than they have.
Regulatory barriers like work-family compatibility and housing prices hinder families from attaining desired fertility levels.
Deep dives
Factors Influencing Fertility Preferences
Women often have fewer children than they would prefer, attributed to economic freedom impacting fertility choices. Survey data reveals that women desire around 2.5 children, yet actual fertility rates average lower at 1.66. Economic foresight plays a role as the costs of raising children upfront can deter immediate desires for larger families. Regulatory barriers such as work-family compatibility, housing prices, and childcare markets hinder families from attaining their desired fertility levels.
Barriers to Achieving Desired Fertility Levels
Women play a critical role in fertility decisions, facing challenges like delayed fertility due to educational pursuits and career commitments. Upfront investments in education and career advancement push against the biological clock, impacting fertility timing. Shifts in women's preferences, influenced by opportunity costs and closer bonding with children, contribute to the gap between desired and actual children. Policy changes focusing on reducing barriers like housing regulations and labor force restrictions are crucial in enabling families to reach their fertility goals.
Government Policy and Fertility Preferences
Government policies aimed at increasing fertility preferences have limited effectiveness due to the overwhelming costs and time commitment of raising children. Anti-natal policies can easily reduce fertility rates, while pro-natal measures face challenges in significantly increasing them. Institutions such as schools, churches, and social networks play a pivotal role in shaping fertility preferences through exposure effects. Economic freedom, especially in regulatory policies like labor force and housing restrictions, and initiatives like school choice, can help remove barriers and support families in achieving their desired fertility levels.
Women tend to prefer more children than they have. How much can expanding economic freedom shrink the gap? Economist Clara E. Piano details her research.