Wednesday, August 02, 2006

US Fertilily

Migration and Economic Growth in the US

One of our themes here at Demography Matters is the idea that inward migrant flows can help ease the pressure put on health and pension systems which results from excessively rapid population change. As I argue here, in the case of Ireland, this is a win-win situation, where a comparatively young population generates a level of economic growth which attracts an inflow of migrants which helps maintain the population as a comparatively young one. At the other end a rather older society like Italy attracts migrants at a somewhat slower pace and is unable to generate enough economic activity and growth to hold on to its own young educated people.
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US Fertilily

According to PRB.org's 2006 World Population Data Sheet Canada's population as of mid-2006 was 32.6 million while that of the USA was 299.1 million. The same document shows that the rate of natural increase in population for the two countries is 0.3 percent per year for Canada and 0.6 per year for the USA. So absent immigration the USA is expected to increase its population twice as fast as Canada on a percentage basis alone. When you take into account the base population number, we should expect to see Canada's population increase absent immigration by 97,800 persons whereas with the same criteria the US population should increase by 1,794,600 persons. A figure which is 18 times greater than the Canadian increase.
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US Demography: A Tale of Two Pyramids?

I've already made a number of attempts here to try and get a better understanding of the dynamics behind US demography. This was an early attempt, where I try and link the rebound in the TFR that can be seen from the mid 70s to the start of modern-era large-scale immigration together with the slowing down in the birth postponement process in the US 'majority' population and the consequent 'recovery' of missing births (this process has also been noted in a number of societies in North Western Europe). The rebound can be clearly seen in this graph:
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More On US Demographics

"Is American society really so resilient that nothing can shake its foundation?" asked Claus in the last post. Well the answer obviously is no, since no society is that resilient. But is the US pretty well insulated from the current round of demographic shocks? This might be a more interesting question. I think the answer would be probably "yes", at least up to 2020 (the same probably also goes for the UK and France which are going to encounter relatively benign ageing in the short term). As ageing expert Axel Borsch Supan never tires of saying, Germany is now where the US will only be 20 years from now.
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Impact of ageing in USA?


How will the world's largest economy be impacted by an ageing population. Well, it is an important question to which I do not know the full answer but lets give it a go anyways. A recent report from the US census bureau gives us all the relevant data and previsions; get the full report here (warning; huge PDF file - 254 pages)
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US Fertilty and Growth, A Research Agenda

Possibly some could accuse me - and probably with good reason - of being obsessed with the US fertility issue (see this post which was a first pass at the issue, and this one by Claus). I think what is happening on the fertility front in the US is important for all of us since the US fertility situation is more or less unique in the OECD world, and possibly will become even more unique as an increasing number of developing countries attain below replacement (and possibly even lowest-low) ferility. The examples of the Asian tigers, China, Thailand, the Southernmost (and economically most succesful) Indian States (Kerala, Tamil Nadu) should give us serious food for thought on this count.
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US Fertility I

This post needs to be read in association with the agenda outlined in my last post. Basically I have been arguing on this blog that the US derived Total fertility Rate is a composite statistic being derived from three separate fertility regimes. Commenter SM Sterling points out that, of course, any taxonomic system is to some extent arbitrary, and that you could multiply this number considerably, it is simply that I am not convinced what positive advantage would be achieved by doing so).

Conventionally, for example over at the Population Reference Bureau, these regimes are defined ethnically:
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US Fertility II: Teenage Births

One of the 'stylised facts' of the relatively high US fertility in OECD terms has been the level of adolescent pregnancy among some groups of the population. Well it is important to note that the importance of this component is decreasing. According to CDC produced Final Births Data for 2003 the teenage birth rate in the US fell 3 percent in 2003 to 41.6 births per 1,000 women aged 15–19 years. This in fact represented another record low for the US and the rate has now fallen by a full one-third since its 1991 peak of 61.8. The rate for females aged 10–14 years declined to 0.6 per 1,000, again a one-third decline since 2000. Birth rates for teenagers 15–17 and 18–19 years each fell 3 percent. The rate for ages 15–17 years was 22.4 per 1,000, 42 percent lower than in 1991, and the rate for ages 18–19 years was 70.7 per 1,000, 25 percent lower than in 1991.
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US Fertility II: Mother's Age At First Birth

Another 'stylised fact' of US fertility has been the comparatively low average first birth ages of US mothers when compared with, say, European ones. In part this has been a product of the comparatively high level of teenage pregnancy, but this is far from being the whole picture.

As can be seen from the above graph birth rates in the age bands 25-29, 30-34, 35-39 and 40 to 44 have all been rising steadily since the early 90s, while those in the 15-19 and the 25-29 groups have been falling. As noted in the last post, the decline in the 15-19 age band represents a sustained and ongoing reduction in the importance of teenage pregnancy.
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US: The Coming Demographic Tsunami



Well, reading through this account of a recent speech by David M. Walker, head of the US Government Accountability Office, I have only one thing to say: Demography Really Does Matter.

Walker has committed himself "to touring the nation through the 2008 elections, talking to anybody who will listen about the fiscal black hole Washington has dug itself, the "demographic tsunami" that will come when the baby boom generation begins retiring and the recklessness of borrowing money from foreign lenders to pay for the operation of the U.S. government".
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