With more than one in five Japanese 65 or older, the government is encouraging citizens like Tsuneko Hariki of Kamikatsu to work well past traditional retirement age.

In Kamikatsu, on the Japanese island of Shikoku, officials have set up an agricultural cooperative whose members log on to computers daily to check the fluctuating prices of the produce that they grow. Then they go out and pick whatever is fetching the best price that day. Unusual, yes, but what’s truly surprising about this cooperative is the average age of its members: 70. In a country where lots of folks retire at 60, Kamikatsu’s residents are working well into their senior years—and they’re doing so not only to buoy retirement earnings but also to energize the local economy. With nearly half of the town’s residents 65 and older, the government realized that there simply wasn’t enough of a traditional workforce available to build or staff most typical industries.

Kamikatsu shows in microcosm what Japan and several other nations now face--and what others soon will. For decades, demographers and economists have watched the world’s fertility rate plunge as countries grew wealthier and more urban. These days, fertility rates in much of the industrialized world are far below replacement levels--that is, the number of kids that parents must have to replace themselves and adults who remain childless. Though the steepest declines happened first in wealthy countries like Japan, Italy, Germany, and Spain, even many developing countries have seen their fertility rates head downward. ...

Seeking solutions, a few policy experts have begun looking more closely at the United States. After a big drop in the mid-1970s, America’s fertility rate bounced back and has remained relatively stable, near replacement level--a 30-year-plus pattern that astounds European observers. For a time, demographers explained the difference between the U.S. and other industrialized countries by observing that America’s population was more diverse, with more recent immigrants who had more children. But fertility levels among native-born white Americans also remain higher than among native-born Europeans, and the U.S.’s overall fertility outpaces that of other countries with a high percentage of foreign-born residents.

Demographers have also speculated that the higher fertility rate is a function of America’s being a more religious country, reasoning that those who engage in organized religious activity favor larger families. One survey found 46 percent of Americans attending religious services regularly, compared with just 4 percent of Japanese, 7 percent of Swedes, and 16 percent of Germans. Yet fertility rates have remained stable in the U.S. even as they have plummeted in religious fundamentalist countries like Iran and Jordan, as well as in developing countries like Mexico, where rates of religious attendance remain higher than in America.

Faced with these contradictions, some scholars are now positing the distinctive nature of the U.S. economy and its labor market as a principal reason why Americans are having so many kids. “In general, women (and couples) are deterred from having children when the economic cost--in the form of lower lifetime wages--is too high,” wrote economists Francesco Billari, José Antonio Ortega, and Hans-Peter Kohler in a 2006 study. “Compared to other high-income countries, this cost is diminished by an American labor market that allows more flexible work hours and makes it easier to leave and then reenter the labor force.”

Labels: demographics, economics, Europe, Italy, Japan, natalism

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