Social Climate, Uncertainty and Fertility Intentions: from the Great Recession to the Covid-19 Crisis.

Abstract

The literature on fertility in context of crises considers major crises exclusively as economic experiences, however, they are also social phenomena, affecting communities, morality and social interactions. When changes in the social climate are of a sufficient magnitude, they tend to break down the social fabric and generate additional uncertainty, more of a social form, which may affect reproductive decisions beyond economic uncertainty alone. Applying Fixed Effects Models to 18 waves of the Swiss Household Panel (2004-2021), this study evaluates the relationship between changes in social climate and social uncertainty and first and second order childbearing intentions, net of economic uncertainty, sociodemographic determinants and unobserved time-invariant individual and local area characteristics. Canton-level mean and variance of generalized trust and optimism about the future are used as proxies of the quality and the unpredictability of the social climate respondents live in. Besides parity, the study explores period variation by comparing the time around the Great Recession (before, during and after) and the years around the Covid-19 pandemic. Results show that the worsening of the social climate and its growing uncertainty correlate with lower and more uncertain first and second birth intentions. Yet, important parity-period interactions emerge.