Baby Bust!

Friday, June 20th, 2008

In Baby Bust!, Kerry Howley notes that the world is panicking over birthrates again:

But while Demographic Winter uses Europe as the ultimate cautionary tale, Europe’s current demographics largely contradict the idea that more socially conservative societies tend to produce more children.

Religion? It is the most religious European countries, such as Italy, that have the continent’s lowest fertility rates; secular Norway is just under replacement level. Working women? European countries with the highest work force participation rates, such as Sweden and Norway, tend to have higher fertility than those with a comparatively small percentage of women working, such as Greece.

Cohabitation? France, where shacking up is a social norm, has a higher fertility rate than any of its immediate neighbors. Family instability? In a forthcoming book, Demographic Challenges for the 21st Century, the demographer Tomas Sobotka argues that divorce rates in Europe might be positively correlated with birthrates. “Many countries which have advanced furthest in the decline of traditional family and the spread of less conventional and less stable living arrangements,” he writes, “record relatively high fertility when judged by contemporary European standards.” Low levels of economic development coupled with social conservatism may well produce high fertility levels; but in modern Europe, it seems that the combination of a modern economy and social conservatism may produce some of the lowest fertility levels on Earth.

In the first half of the 20th century, demographers generally held that urbanization, industrialization, and education were the chief determinants of fertility decline. Later, neoclassical economists hypothesized that the rate of decline would correlate with the rates of increase in the opportunity cost of women staying out of the work force and in the relative cost of raising children.

The latter theory is useful “as a way to structure thinking,” according to the American Enterprise Institute demographer Nicholas Eberstadt, but, as with nearly every theory of fertility, there is much that it fails to explain. The relative cost of having children is indeed very high in Hong Kong, Japan, and the United States, but these countries have markedly different birth rates. Nor does it explain why the birthrate is lower north of the Canadian border than south of it.

Strangest of all, total fertility rates are dropping most rapidly in predominantly rural countries with low female literacy rates and few work force opportunities. Dramatic drops in South Asia and sub-Saharan Africa, absent much economic development, have come as a surprise to economists and demographers alike. In 1970, according to the United Nation’s Children’s Fund, Bangladesh’s total fertility rate was 6.4. In 2006 it was 2.9. Zimbabwe’s rate dropped from 7.4 to 3.3 during the same period.

The theory that economic development leads to fertility decline breaks down at the very first demographic data point on record. The first country to enter a sustained fertility decline was not England, the cradle of the industrial revolution. “It was France!” exclaims Eberstadt. “France was rural and poor and was very largely illiterate and, not to put to fine a point on it, it was Catholic. That kind of confutes a lot of things we think are supposed to connect between modernization and fertility change.”

Demographic panic, it turns out, is useful for pushing almost any government program:

A dearth of pregnancies is evidence that protections for workers are too few, social welfare allowances too small, public school days too short, mandated maternity leave too limited. Women want to fulfill their natural roles as mothers, goes the assumption, but dog-eat-dog capitalism stands in the way.

This got a chuckle out of me:

The contention that women aren’t having as many children as they’d like to is rooted in “desired fertility,” or the number of children women say they want as they enter their childbearing years. In Europe, as women increasingly choose to go childless, they continue to tell surveyors that they want two children. That disparity is sometimes deemed “unmet demand”; governments, goes the theory, must assist women in the quest to produce the children they say they want.

When the concept is framed this way, most of us have “unmet demand” for any number of goods — flat-screen televisions, yachts, MacBooks — that taxpayers fail to help us acquire.

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