Core Points - The nature of child-rearing has shifted from an investment for family continuity and elder support to a high-cost consumption activity for parents [2][5] - Economists, including Timothy Taylor from Stanford University, are exploring the economic implications of this transformation in child-rearing [3] Cost Analysis - The direct costs of raising children can be categorized into out-of-pocket expenses and opportunity costs, which include the value of time parents could have spent on other activities [6][7] - In low-income, agricultural economies, the direct costs of raising children were low, as children contributed labor to the household [8][9] - In the early 20th century, children provided significant income support to elderly parents, accounting for about one-third of income for families with males over 65 [10] Modern Costs - In high-income countries like the U.S., the out-of-pocket cost of raising a child is substantial, with estimates around $250,000, excluding college tuition and adult living expenses [21][22] - Housing remains the largest expense in child-rearing, with significant increases in housing and healthcare costs over time [20][21] Opportunity Costs - Women's opportunity costs have changed significantly, as more women enter the workforce and pursue higher education, leading to delayed childbirth and fewer children [24][29] - The average number of children born to women with different education levels shows a clear trend: higher education correlates with fewer children [31][32] Technological Impact - The introduction of birth control pills has significantly altered women's reproductive choices, allowing for greater participation in education and the workforce [35][36][41] Economic Returns - The economic benefits of having children have diminished over time, with social security and pensions reducing reliance on children for elder support [44][45] - The return on investment for parents has shifted towards having fewer children and investing more in each, as skill premiums in the labor market have increased [48][50] Consumption Perspective - The perception of children as a luxury good has emerged, with wealthier individuals spending more on child-rearing as income increases [54]