Recommendations

Important policy implications for the government regarding the declining fertility can be drawn from the results of this study. First, policies directed towards providing more public houses or friendly housing subsidies to newly married couples will go a long way in reducing the observed low fertility rates. This idea is based on the observation that that couples generally take into consideration their housing conditions before they consider having a child. Thus, providing public housing or housing subsidies to newly married couples will ensure home-ownership, hence, encouraging young couples to have their first child (see for instance Mulder and Wagner, 2001; Feijten and Mulder, 2002) because owner-occupied is more suitable than rental houses (Mulder and Wagner, 1998). Second, high housing prices means young couples or parents who own houses that are not yet paid off tend to be more financially burdened as they have to service their high house mortgages which most likely force them to delay their reproductions decisions. As such, government policies aimed at reducing mortgage interests or providing birth allowances for young couples or parents will be essential.

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