Amid the Father's Day festivities, many of us are privately asking a Scroogely question: "Having kids--what's in it for me?" An economic perspective on happiness, nature and nurture provides an answer: Parents' sacrifice is much smaller than it looks, and much larger than it has to be.
Most of us believe that kids used to be a valuable economic asset. They worked the farm, and supported you in retirement. In the modern world, the story goes, the economic benefits of having kids seem to have faded away. While parents today make massive personal and financial sacrifices, children barely reciprocate. When they're young, kids monopolize the remote and complain about the food, but do little to help around the house; when you're old, kids forget to return your calls and ignore your advice, but take it for granted that you'll continue to pay your own bills.
Many conclude that if you value your happiness and spending money, the only way to win the modern parenting game is not to play. Low fertility looks like a sign that we've finally grasped the winning strategy. In almost all developed nations, the total fertility rate--the number of children the average woman can expect to have in her lifetime--is well below the replacement rate of 2.1 children. (The U.S. is a bit of an outlier, with a rate just around replacement.) Empirical happiness research seems to validate this pessimism about parenting: All else equal, people with kids are indeed less happy than people without.
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