Catholicism and the Economics of Fertility

Abstract

The economic approach to fertility is an application of the economic theory of consumer behaviour. It is assumed that utility-maximizing decisions regarding children are affected by explicit and implicit prices and income. One of the criticisms of this approach is that social norms tend to be given short shrift. In this paper, we examine the effect of Catholicism on fertility in the United States. Several new findings are presented. Most importantly, it is shown that many studies on Catholicism are flawed because of sample selection bias, which arises because ex-Catholics prefer smaller families than non-Catholics. We also show that religious activity has no effect on fertility if it is treated as an endogenous variable. Further, it is shown that the fertility transition in the United States is partly related to the changing effect of Catholic norms.

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