The New Economics of Fertility

Delivering sustainable economic growth
Posted Jul 29, 2022 | IMF, Matthias Doepke, Anne Hannusch, Fabian Kindermann, Michele Tertilt

There has been a fundamental economic transformation: in many high-income countries with women participating in the labour force for much of their lives, Matthias Doepke, Anne Hannusch, Fabian Kindermann and. Michele Tertilt note in their article in Finance and Development. The earlier pattern of a woman entering the labour market but dropping out after marriage and children is now the exception rather than the norm. Together with falling fertility rates in high-income economies making for rapid population-aging, this poses challenges for governments, economies, and the sustainability of social security systems. The authors advise policy makers to note and to take a career-family perspective. Investing in gender equality - and especially the labour market prospects of potential mothers - may be cumbersome in the short run, but the medium- and long-term benefits will be sizable, for both the economy and society.


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