Fertility Rate Trends and Family Policy Analysis

This technical report by Allianz Research examines the declining fertility rates across OECD countries and the implications for family policies. It highlights that despite increased government spending on family and children, which has risen from 1.6% to 1.9% of GDP in the EU-27 from 2001 to 2023, this financial support has not effectively increased fertility rates. The report discusses various factors influencing fertility behavior, including women's education, housing affordability, and societal norms. It notes that the unprecedented decline in fertility rates is a global issue, with specific statistics from countries like Germany, Japan, and the US. The report emphasizes the need for family policies to focus on equal opportunities for children rather than merely increasing financial incentives. Additionally, it outlines the necessity for adapting labor markets and pension systems to accommodate an aging population, suggesting that education plays a crucial role in mitigating the effects of demographic changes on economic growth.