2020 was a year of tumult, grief, and longing expectation for what comes next. But, for our young children and their families it was particularly taxing and with significant long-term consequences. Here’s a snapshot in five graphs.
The economics of fertility
Fertility rates have been falling around the world for decades, but the economic loss and uncertainty of the Covid-19 pandemic are likely to drive fertility rates down even further in the coming years. Recessions and unemployment lead to fewer babies. Recentstudies have found that a one percentage-point increase in the unemployment rate is associated with a 1-2 percent decrease in birth rates. The large decline in fertility rates associated with the 2008-2009 Great Recession resulted in 400,000 fewer births. At the same time, the picture becomes more complicated when one considers unemployment by gender. One of the above studies found that while improving job prospects for men was linked to higher fertility rates, improving prospects for women had an opposite (though smaller) effect, perhaps because a stronger job market for women increased their opportunity costs of having a child. Beyond the labor market itself, recent surveys have indicated that the costs of child care and student loan debts are also causing people to delay child bearing.