How wage increases for men and women affect fertility and gender inequality
A study based on Danish longitudinal data revealed that wage increases for men lead to higher fertility rates, whereas wage increases for women result in a decrease in the number of children. This finding emerged from the use of a life-cycle model analyzing fertility decisions alongside labor supply and human capital accumulation.
The authors emphasize that policies targeting gender wage equality can have unintended social consequences, notably reducing birth rates. Wage elasticities of women were found to be over 10% lower when fertility adjustments were accounted for, highlighting the complex interplay between income and demographic outcomes. This interaction should be carefully considered in socioeconomic policymaking.
These insights call for deeper investigation into the multifaceted impacts of gender equality initiatives to avoid adverse demographic effects and promote balanced societal development.