In the nineteenth century, fertility in Europe began to drop — and it never rose again. Of all the explanations given for the change (e.g., increase in birth control technology), there is one that is often overlooked: public pension systems.
Does knowing you’ll get a social security check at 70 limit the number of children you have in your 30s? Most people would say it wouldn’t (or, at least, shouldn’t). But a new study finds that in the past there is a strong correlation between state-provided pensions and fertility. The working paper produced by the European Central Bank finds,