| > why should I spend time developing an employable skill just to raise >2.3 children and not thrive in my career? This contains the answer: we aren’t paying enough. Kids used to confer private, excludable benefit through their labour. Without child labour, their economic value is no longer exclusive to their parents. This transforms children, economically, from a private good to a common resource. Our low birth rates are a tragedy of a commons. A known problem with a known solution. If we want a higher birth rate, we should have a massive child tax credit. One that can rival the rising cost and opportunity cost of childrearing. |
At some point, would-be parents at the margin decide they don't need a job to attain economic security.
This is basically a way of doing price discovery on the "market rate" of parenthood. Currently we're under-paying and getting the predictable outcome, and we're all out of ideas.
(In fact, I think this should basically be the solution to all labor shortages, of which parenting is just one example. The wage should increase until the market rate is found, even if that wage is much higher than people say it "should be").