On the Relationship Between Wealth and Fertility
Monday July 17th 2006, 5:32 pm
Filed under: Canadian Politics

On the Relationship Between Wealth and Fertility
By Gregory D. Morrow

A few people commented on my post on immigration and uneven development suggesting that we need to do something to increase our low fertility rate (of 1.61 children per woman). Some suggested that policies such as the Conservative $100-per-month child allowance can indeed help increase fertility. If 100 bucks a month will make you have a kid, you need to give your head a shake. While it would be great if Canadians suddenly started having more children, the reality is, if Quebec’s generous baby bonuses are any indication, it takes massive public inducements to promote having children, and even then, the results are only marginal increases at best (See Milligan 2002). It will take a 30% increase in fertility rates to get to replacement levels — no small task.

The reality is, low fertility rates go hand-in-hand with prosperity. The graph below illustrates the correlation between fertility and wealth. Amazingly, no developed nation has more than the required 2.1 children per woman necessary to replace its population (one child per parent plus a bit extra to account for deaths).


Note: Bermuda, Luxembourg, & Equitorial Guinea were omitted for clarity, since their per capita GDPs were unusually high.

Clearly, Canada is not alone in being a wealthy country with a low birth rate. The U.S. 2.09 rate is higher than Canada’s 1.61 and just below the replacement rate. But, the U.S. is unusual in that its Latino population of 41.3 million (1 in 7 Americans) has a high fertility rate of 2.79 compared to the U.S. white non-Latino birth rate of 1.89. Moreover, on average, Latinos are poorer than non-Latino whites, again demonstrating the correlation between fertility and wealth.

The richest 30 countries average a per capita GDP of $36,470 and each woman averages 1.75 children. The poorest 30 countries average a per capita GDP of $920 and each woman average 6.01 children.

This massive gulf between rich and poor and their divergent fertility rates reinforces my argument about uneven development. Uneven development occurs at every scale — globally (as in the massive differences between rich and poor countries), within countries (for example, the differences between half and half-not provinces in Canada), within provinces (for example, the differences between quickly growing urban areas, and declining rural areas), and even within urban regions (for example, the differences between rich and poor neighborhoods). Unless we take uneven development seriously, we risk further polarizing the world, our country, our provinces, and our cities.

***

For informational purposes, below is a summary of the 30 richest and poorest countries.

FERTILITY RATES OF TOP 30 RICHEST COUNTRIES

# GDP PER CAPITA COUNTRY REGION RATE RANK
1 $69,900 Bermuda North America 1.89 150
2 $55,600 Luxembourg Western Europe 1.78 161
3 $50,200 Equatorial Guinea Africa 4.55 43
4 $43,400 United Arab Emirates Middle East 2.88 87
5 $42,300 Norway Scandinavia 1.78 162
6 $41,800 United States North America 2.09 130
7 $41,000 Ireland Western Europe 1.86 151
8 $40,000 Guernsey Western Europe 1.39 199
9 $40,000 Jersey Western Europe 1.58 186
10 $38,500 British Virgin Islands Caribbean 1.72 175
11 $35,600 Iceland Scandinavia 1.92 140
12 $34,600 Denmark Scandinavia 1.74 168
13 $34,600 San Marino Western Europe 1.34 205
14 $34,000 Canada North America 1.61 185
15 $32,900 Hong Kong Asia 0.95 224
16 $32,700 Austria Western Europe 1.36 203
17 $32,600 Cayman Islands Caribbean 1.90 145
18 $32,300 Switzerland Western Europe 1.43 196
19 $31,900 Australia Australia/NZ 1.76 166
20 $31,500 Japan Asia 1.40 199
21 $31,400 Belgium Western Europe 1.64 184
22 $30,900 Finland Scandinavia 1.73 175
23 $30,500 Netherlands Western Europe 1.66 180
24 $30,400 Germany Western Europe 1.39 202
25 $30,300 United Kingdom Western Europe 1.66 178
26 $29,900 France Western Europe 1.84 155
27 $29,800 Sweden Scandinavia 1.66 179
28 $29,200 Italy Western Europe 1.28 212
29 $28,500 Isle of Man Western Europe 1.65 182
30 $28,100 Singapore Southeast Asia 1.06 222
- $36,470 AVERAGE - 1.75 171

FERTILITY RATES OF TOP 30 POOREST COUNTRIES

# GDP PER CAPITA COUNTRY REGION RATE RANK
224 $400 Timor-Leste Southeast Asia 3.53 63
223 $600 Somalia Africa 6.76 3
222 $600 Malawi Africa 5.92 15
221 $600 Gaza Strip Middle East 5.78 19
220 $600 Comoros Africa 5.03 31
219 $700 Burundi Africa 6.55 7
218 $700 Congo, Democratic Africa 6.45 9
217 $700 Tanzania Africa 4.97 32
216 $800 Afghanistan South Asia 6.69 5
215 $800 Sierra Leone Africa 6.08 12
214 $800 Guinea-Bissau Africa 4.86 37
213 $800 Kiribati Africa 4.16 50
212 $900 Niger Africa 7.46 1
211 $900 Yemen Middle East 6.58 6
210 $900 Madagascar Africa 5.62 21
209 $900 Zambia Africa 5.39 25
208 $900 Ethiopia Africa 5.22 28
207 $1,000 Liberia Africa 6.02 14
206 $1,000 Eritrea Africa 5.08 30
205 $1,100 Benin Africa 5.20 29
204 $1,100 Kenya Africa 4.91 35
203 $1,100 Central African Republic Africa 4.41 45
202 $1,100 West Bank Middle East 4.28 48
201 $1,100 Tuvalu South Pacific 2.98 82
200 $1,200 Mali Africa 7.42 2
199 $1,200 Sao Tome and Principe Africa 5.62 22
198 $1,200 Tajikistan Central Asia 4.00 52
197 $1,300 Burkina Faso Central Asia 6.47 8
196 $1,300 Congo Africa 6.07 13
195 $1,300 Djibouti Africa 5.31 26
- $920 AVERAGE - 6.01 26

5 Comments/commentaires
Leave a comment/Enregistrer un commentaire

Thank you! This is something that hardly ever gets mentioned in those (all too creepy, if you ask me) discussions about how to get women to start churning out those babies. A low birth rate isn’t a sign of policies gone bad, it’s a sign of prosperity.

Comment/commentaire by Idealistic Pragmatist 07.17.06 @ 7:28 pm

I don’t think the connection between wealth and fertility is automatic. Quebec once had a fertility rate of 4.0,right before the Quiet Revolution. It wasn’t exactly the richest place, but it wasn’t comparable to Sub-Sahara Africa, either.

One thing to remember about the fertility rate in poorer countries, is that it doesn’t tell the whole story. If a woman has six kids, and only three of them make it to age five, the fertility rate of 6 distorts the picture of population growth. Places with high fertility also have high infant mortality.

I think prosperity alone doesn’t explain the low fertility rate. There are cultural factors as well. If women start having kids when they’re age 28 instead of age 18, of course that’s going to affect fertility. Now higher education, employment aspirations, etc do affect age of childbearing, but it’s not automatic. There’s nothing that says a woman who starts having kids at 25 can’t have four children. But there are many factors that contribute to this.

Anyhow, thanks for posting.

Comment/commentaire by SUZANNE 07.18.06 @ 7:46 pm

democraticspace:

Great to see you addressing this topic.

Yes, baby bonuses are expensive. But these are required to counter the two biggest fertility problems that we have – social security and universal healthcare. These programs remove one of the main motivations behind having kids – who needs kids to take care of them when the state will do it.

Since the state is primarily responsible for the low fertility, the state should enact policies to reverse the trend. Money is no object because the alternative is population implosion and economic stagnation.

Of course my choice would be to eliminate univeral health care and social security programs, but that won’t go over well politically just yet. In the meantime it is not unreasonable for the state to provide between a $10k and $20k fertility incentive.

Comment/commentaire by dave 07.22.06 @ 6:39 pm

dave – the evidence suggests that incentives don’t produce a meaningful difference in fertility rates. Maintaining current immigration levels, Canada will continue to grow and will not stagnate. The real issue isn’t the low population growth of the developed world, it’s the unsustainably high population growth of the developing world. Like I said, low fertility is common is all affluent societies.

Comment/commentaire by democraticspace 07.22.06 @ 7:15 pm

Low fertility is common to all affluent societies – yes.

But geopolitical power, and the security that brings its nation’s citizens, will accrue to those societies that are affluent AND have a high population growth.

The US will be dominant for decades. Maybe India will determine international public policy next, but that is a half cenntury away, if it happens at all.

Comment/commentaire by dave 07.23.06 @ 3:56 pm



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