A Study on the Influence of Economic Policy on Fertility Reduction and the Countermeasures Based on China and Foreign Policy

Abstract

It has been confirmed that China's fertility rate has fallen below the fifth lowest globally and has fully entered the low fertility trap. There is an urgent need to increase the fertility rate. This paper mainly studies the causes of the gradual decline in fertility in China in recent years. It compares the subsidy measures taken by various countries to cope with the low fertility rate. It compares the living cost and economic policy system in China to analyze how China should raise the fertility rate. Through the analysis and summary of the literature, it is found that the reasons for the decrease in China's fertility rate year by year are that the explicit and implicit costs of birth and raising are too high, and the allocation of educational resources is unfair, resulting in low social identity and low happiness. With the gradual decrease of the fertility rate, the population structure changes, and the risk increases, making it difficult for the fertility rate to return to normal. Therefore, China should follow the Nordic countries' policies on parenting costs and social welfare, favor multi-child families, reduce parenting costs after childbirth, improve family happiness, and introduce economic support policies for child-rearing. At the same time, China should avoid the policy risk of "only giving money" and avoid the ineffective phenomenon of increasing welfare but declining fertility rates instead of rising.