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Why Some Countries Are Paying Couples to Have More Children

Countries like Japan, South Korea, and Poland are offering financial incentives to encourage higher birth rates as they face population decline; Japan’s population has dropped to around 125 million with a birth rate of just 1.3 births per woman, South Korea has the world’s lowest fertility rate at 0.72, and Poland, with a birth rate of 1.4, is introducing policies to slow its population decline.

TPP
The Population Project
Apr. 3, 2025
Article

A Growing Concern: Population Decline


Population trends across the globe have taken an unexpected turn in recent decades. While global overpopulation has historically been a pressing concern, the reality for many nations today is quite the opposite: declining populations. Countries like Japan, South Korea, and Poland are experiencing unprecedented decreases in their populations, threatening their economies, social structures, and long-term sustainability. In response, some governments are adopting extraordinary measures, including paying couples to have more children. But what’s driving these policies, and how do they relate to the broader demographic shifts shaping our world?


At The Population Project, we’ve dedicated ourselves to tracking population data, uncovering trends, and providing insights into the factors influencing these changes. Declining populations aren’t just statistics; they’re stories of societal shifts, economic strain, and evolving cultural priorities. Let’s dive into why population numbers are falling and how countries are addressing this challenge.


The Numbers Behind the Decline


Globally, birth rates are dropping, and life expectancy is increasing. This combination creates an imbalance: fewer young people entering the population to replace an aging workforce. For a population to remain stable, a country’s fertility rate must average 2.1 children per woman. Yet many developed nations have seen their fertility rates plummet far below this replacement level.


For example:


  • Japan:
    The fertility rate is 1.3 children per woman, and the population is projected to shrink by nearly 30% by 2060.
  • South Korea:
    Holding the record for the world’s lowest fertility rate at just 0.78 children per woman, South Korea’s population decline is one of the most severe globally.
  • Poland:
    With a fertility rate of 1.39, Poland faces significant challenges in maintaining its workforce and sustaining economic growth.

These numbers tell a story of profound societal change. Economic pressures, shifting gender roles, urbanization, and changing cultural attitudes toward marriage and family are all contributing to this decline.


The Economic and Social Impact of Declining Populations


A shrinking population creates a domino effect of challenges for a country. Fewer young people mean fewer workers to support the economy and sustain pension systems for retirees. Public services, such as healthcare, become strained as aging populations require more resources, while tax revenues shrink due to a declining workforce. Entire industries may falter, and rural areas risk depopulation as young people migrate to cities or leave the country altogether.


In Japan, for example, “ghost towns” have emerged in rural areas, where abandoned homes and empty schools paint a bleak picture of demographic decline. In South Korea, workforce shortages and rising costs of eldercare are becoming critical concerns. Poland, with its emigration trends, struggles to retain its young workforce, further exacerbating its demographic issues.


Paying for Parenthood: Government Incentives


In response to these alarming trends, some countries are offering financial incentives to encourage couples to have more children. Here are a few notable examples:


  1. Japan:
    • The government provides cash bonuses for each child born, along with subsidized childcare and extended parental leave policies.
    • Local municipalities have implemented their own programs, offering up to $10,000 per child in some regions.
  2. South Korea:
    • The government offers significant cash payments to parents, with some cities providing up to $100,000 over several years for families with multiple children.
    • Free childcare and education subsidies are part of a broader strategy to support working parents.
  3. Poland:
    • The government’s “Family 500+” program provides monthly cash payments of approximately $130 per child to support families.
    • Additional tax benefits and subsidized housing programs aim to reduce the financial burden on young parents.

While these measures are generous, their effectiveness remains uncertain. Financial support alone may not be enough to address the deeper cultural and economic issues deterring young people from starting families.


The Role of Culture and Society


Declining populations aren’t just about numbers; they’re deeply tied to cultural and societal changes. In many countries, young people are delaying or avoiding marriage and parenthood due to financial instability, career pressures, and changing attitudes toward traditional family roles.


For instance, in South Korea, the intense work culture and high cost of education make parenting seem daunting and unaffordable. In Poland, economic migration and the allure of better opportunities abroad discourage family growth. Meanwhile, Japan’s rigid work environment and gender inequality make it difficult for women to balance careers and family life.


How The Population Project Can Help


At The Population Project, we aim to provide a deeper understanding of these trends through comprehensive data collection and analysis. By tracking population changes, fertility rates, and demographic shifts, we offer valuable insights into the challenges and opportunities facing nations around the world.


Our database includes:

  • Population statistics: Detailed records of births, deaths, and migration patterns.
  • Name trends: Insights into popular names by region, reflecting cultural shifts.
  • Demographic projections: Forecasts for future population changes and their potential impact.

Popular Names by Country


  • Japan: Haruto, Sakura, Yui
  • South Korea: Min-Jun, Ji-Woo, Seo-Yeon
  • Poland: Zofia, Antoni, Maja

Explore Our Name Database to discover more about the cultural and historical significance of these trends.


A Call to Action


Population decline is a complex issue with far-reaching consequences. While financial incentives are a step in the right direction, they’re only part of the solution. Addressing this challenge requires a holistic approach, including economic reforms, gender equality, and support for work-life balance.


At The Population Project, we believe that understanding the data is the first step toward finding solutions. By exploring our database and insights, you can join us in shaping the conversation about population trends and their impact on our world.

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