The Welfare Analysis of Fertility Reduction

Abstract

The various cost-benefit studies of fertility reduction are discusse d. The main weakness of all types of cost-benefit studies is that they have no welfare content. They measure the costs of raising a child in different societies but do not measure the psychic pleasures that children give to their parents. In this study it is assumed that parents enjoy their children in general and that actual family sizes will not be reduced much without prior motivation toward smaller familie s. Government policies to change reproductive behavior will depend on net external costs of various family sizes the receptiveness of couples to bribes and incentives and the effects of government policy on income distribution between families in the society. There is little evidence to show that more available contraceptive information and subsidized contraceptives will result in a change in reproductive behavior. Incentive payments for restriction of family size are shown to be ineffective. Government-established disability and old-age pension systems may have an effect in motivating couples to have fewer children.