The economics of the baby bust with Jesús Fernández-Villaverde

In this episode of the Works in Progress podcast, hosts Sam Bowman and Peter Carricano interview Professor Jesus Fernandez Villaverde about the economics of fertility and declining birth rates. They discuss the economic consequences of very low fertility rates, such as a declining population and its impact on economic growth, social security, and public debt. Villaverde also addresses the uneven distribution of population drops, the challenges faced by countries like Japan and South Korea, and the surprising decline in fertility rates in the developing world. The conversation explores potential reasons for these trends, including the increasing value of skills in the modern economy, changing social norms, and the impact of technology. They also consider policy options, such as housing, education, and baby subsidies, while acknowledging the difficulties of social engineering and the importance of better data and awareness.