Why Is It Challenging to Reverse the Ongoing Decline in China's Birth Rate Despite the Lenient Birth Policies? -An Analysis from Economic Perspective

Abstract

In response to the potential crises posed by an aging population and labor shortages, the Chinese government took steps to address these challenges after ending the one-child policy. These efforts involved the gradual relaxation of birth policies, transitioning from the two-child policy to the more recent three-child policy. Despite these policy shifts, the persistent downward trajectory of birth rates has shown little sign of abating. This study attempts to analyze the reasons for this phenomenon from an economic perspective; in the pursuit of addressing the multifaceted challenge of declining birth rates, a nuanced understanding of these intertwined economic factors is crucial. These economic elements form a complex tapestry that includes soaring housing prices, the burden of mortgages, expenses associated with childbirth, the costs linked with raising children, and the opportunity cost of childbirth to career women. High property prices make the prospect of homeownership daunting for young families, further compounded by the financial obligations of mortgages. Additionally, the financial implications of education and child-rearing expenses and the opportunity cost of childbirth to career women present substantial considerations for prospective parents, often contributing to the reconsideration of family size.