Author(s)

Haoxin Zhao

Corresponding Author

Haoxin Zhao

Abstract

Universal two-child policy is implemented in China to relieve the pressure of the increasing national aging problem. However, the implementation of the universal two-child policy indeed boosts the fertility rate while the larger decline in the birth rate of the first child offset the effect from the increase in two child families and has even worsened the national fertility rate. The whole society believes the increasing living cost is the main reason which causes the low incentive to give birth when the high housing price occupies the largest share among all the costs. This paper briefly investigates the fertility rate under the housing price using existed fundamental model of how house prices affect fertility rate and gives general ideas about how future research could be conducted based on unique characteristics of China. This paper aims at indicating the importance of understanding the fertility rate of China under the housing pricing for policy makers to issue the most efficient policy to achieve the expected target with lowest social costs.

Keywords

Fertility Rate; Housing Pricing; Policy Making