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August 27, 2026Open Access

The Economics of Human Shrinkage

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Authors

BABekdaulet AbzhamievFishBase Information and Research Group

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Implication

Longitudinal panel study reveals positive within-country income effects and negative urbanization impacts on total fertility rates across global nations, highlighting demographic contraction drivers.

Key Points

  • To evaluate the socioeconomic determinants driving the contraction of global Total Fertility Rates below the replacement threshold of approximately 2.1.
  • Formulated a structural microeconomic framework extending Becker's Quantity-Quality Trade-off model and maternal time opportunity costs.
  • Compiled 6,120 country-year observations from 1990 to 2024 via the World Bank API, estimating Pooled OLS, Panel Fixed Effects (FE), and Two-Way Fixed Effects (TWFE) models with Driscoll-Kraay robust standard errors and VIF diagnostic auditing.
  • Isolating within-country variation over time via Panel Fixed Effects revealed a positive pro-natalist liquidity effect for income (β = 0.097, p < 0.001), reversing the negative cross-sectional Pooled OLS association (β = -0.089).
  • Urbanization (β = -0.0251, p < 0.001) and female labor participation structurally depressed fertility rates by elevating child-rearing maintenance costs and career opportunity costs.
  • Infant mortality reduction represented the single strongest historical catalyst driving modern family rationalization and fertility contraction (β = 0.0162, p < 0.001).

Cite This Study

Bekdaulet Abzhamiev (2026) studied this question.

synapsesocial.com/papers/6a8fea0110c91c1e92621f5ehttps://doi.org/10.5281/zenodo.22096152
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