Decline and Fall: Trends in Family Formations and Fertility in Canada since 2001

Abstract

This paper examines three questions: do people gain significantly from being part of a family; what are the trends in family formation in Canada over the past two decades; and what factors explain these trends? The report finds that being part of a family provides significant benefits in terms of income and broader well-being. Yet despite these benefits, Canadians are now significantly less likely to form families, and when they do, fewer are choosing to have children. Canada’s fertility rate was only 1.3 in 2022, down from 1.6 in 2016. Policy recommendations include making housing more affordable, using the tax system to incentivize family growth, subsidizing daycare, and reducing credentialism.

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