Why Is Fertility So Low in High Income Countries?

This paper considers why fertility has fallen to historically low levels in virtually all high-income countries. Using cohort data, we document rising childlessness at all observed ages and falling completed fertility. This cohort perspective underscores the need to explain long-run shifts in fertility behavior. We review existing research and conclude that period-based explanations focused on short-term changes in income or prices cannot explain the widespread decline. Instead, the evidence points to a broad reordering of adult priorities with parenthood occupying a diminished role. We refer to this phenomenon as “shifting priorities” and propose that it likely reflects a complex mix of changing norms, evolving economic opportunities and constraints, and broader social and cultural forces. We review emerging evidence on all these factors. We conclude the paper with suggestions for future research and a brief discussion of policy implications.