Sub-replacement Fertility - Forecast

Forecast

Some European governments, fearful of a future pensions crisis, have developed natalist policies to attempt to encourage more women to have children. Measures include increasing tax allowances for working parents, improving child-care provision, reducing working hours/weekend working in female-dominated professions such as healthcare and a stricter enforcement of anti-discrimination measures to prevent professional women's promotion prospects being hindered when they take time off work to care for children. Over recent years, the fertility rate has increased to around 2.0 in France and 1.9 in Britain and some other northern European countries, but the role of population policies in these trends is debated.

Attempts to increase the fertility rate among working women bring difficult political dilemmas: how far to alter traditional working practices so that women who are juggling work and child-raising responsibilities are not disadvantaged in their careers compared with men (for example, by legislating for compulsory paternity leave, flexible working and/or limiting total weekly working hours for men as well as women) and above all the question of whether the problem of sub-replacement fertility is so serious that unmarried women should also now be encouraged to have more children.

Giving women paid maternity leave can have the unintended negative consequence of dissuading employers from hiring women because they may fear having to pay a pregnant woman wages for a job she isn't doing. This may increase the gender-wage gap, the income disparity between men and women in the labor force. This disincentive can be ameliorated by giving parental leave to both men and women.

European analysts hope, with the help of government incentives and large-scale change towards family-friendly policies, to stall the population decline and reverse it by around 2030, expecting that most of Europe will have a slight natural increase by then. C. D. Howe Institute, for example, tries to demonstrate that immigration can not be used to effectively counter population ageing.