Low fertility in Australia: evidence, causes and policy responses

Fertility in Australia is low and may well fall further. Why? McDonald discounts theories based on ‘post materialist values’ and argues that most young women want at least a two-child family. Fertility is low because of the high cost of children, the risk of making long-term commitments in the face of an uncertain future, and the uneven nature of gender equity. This third reason is important. Women are treated as equals in the education system and the labour market, provided they participate as individuals. But once they become mothers they are more often treated as members of families, families headed by a male breadwinner. This is especially true as far as taxation and welfare are concerned. In these circumstances gender equity suffers. McDonald's policy suggestions focus on gender equity: we need family-friendly work places, child-care reform and reform of the taxation system. Current arrangements reward stay-at-home mothers and mothers who work full-time. They penalise those who prefer a balanced compromise. If we persist in ignoring the needs of this group of women fertility will continue to fall. Copyright. Monash University and the author/s