We all know that governments construct roads, combat wars, and print cash.
However matchmaking?
South Korea
Throughout 2023, far under the alternative fee of two.1, South Korea’s girls had a median of .72 infants throughout their lifetime:
Responding, the South Korean authorities grew to become a matchmaker. After 3200 singles utilized for one authorities sponsored occasion, 100 have been chosen for a “mass blind date” that resulted in 27 {couples}. These {couples} then acquired a relationship package deal of meal tickets and vouchers price $225.
At this level we are able to ask why South Korea has the “lowest low” fertility fee. A Nobel Laureate has a solution.
Our Backside Line: Financial Development
In a brand new NBER paper, Nobel Laureate Claudia Goldin asks why nations like South Korea have low fertility charges. Her solutions take her to the financial development charges of two teams of countries. Whereas Group 1–Denmark, U.S., France, U.Ok., Germany, Sweden–grew steadily after the Nineteen Fifties, Group 2–Greece, Italy, Japan, South Korea, Portugal, Spain–had a a lot steeper development spurt.
Beneath, you possibly can see the completely different teams. I labeled Korea:
In Group 1, gradual development gave individuals extra time to acclimate. Against this, as their incomes quickly grew, individuals in Group 2 tried to retain the traditions that many had introduced from rural villages to the town. At residence, the lads wished to proceed doing few duties and retain their elevated standing. On the identical time, the ladies in these households skilled extra freedom.
The result’s battle.
In response to Goldin, the ladies wished fewer kids than their potential companions. As Goldin defined, when a convention sure individuals is catapulted into modernity, their fertility fee plunges.
You’ll be able to see that in Group 1, the entire fertility charges plateaued and declined far lower than for Group 2 nations:
Goldin completely summarizes the connection amongst fertility charges, girls’s labor power participation, and the division of labor at residence:
She might have added South Korea’s matchmaking occasions.
My sources and extra: Because of David Wessel’s Hutchins electronic mail for alerting me to the new Claudia Goldin research. Subsequent, converging with Goldin’s analysis considerably, the South Korean story was right here, right here and right here.