Why rich Families are Having more Kids

“silhouette photo of five person walking on seashore during golden hour” by Kevin Delvecchio on Unsplash

How do we explain this phenomenon? In two Words: Income Inequality

Key Takeaways

• Historically, low-income women with lower levels of education have had more children than high income, highly educated women
• That trend is reversing as high income, highly educated women are having more children than ever before
• High-income women can better afford to pay for childcare, enabling them to have more children and work longer hours than low-income women
• Women with high income and education can also better afford to invest in their children’s education. This is leading to a highly educated younger generation as more children are born into rich families.
• A $15 (or higher) minimum wage leads to high-income women having fewer children and working less. This is because a higher minimum wage increases the cost of childcare, increasing the opportunity cost of having more children.

The Times They Are A Changin

Poor people have more kids than rich people. Anyone who has taken a labour economics class knows this to be true. At least it used to be true. According to a report from the St. Louis Federal Reserve. Rich, highly educated white women are…