Economic determinants of low level of fertility in Iran

Aliyar Ahmadi, Shiraz University
Hossein Ghodrati, Hakim Sabzevari University, Iran
Mohamadreza Boroumandzade, Shiraz University

Iranian fertility experienced a tremendous sharp as it fell from 7 births per woman after revolution in 1979 reaching to a less than replacement level in first decade of twenty-first century. In this paper the low level of fertility in terms of economic variables is being investigated. In explaining fertility economically, a variety of variables are important in the life course of individuals. In theoretical and literature consideration Socio-economic explanations of fertility transition focus on the role of women schooling and education which encourage women to have jobs out of home. From this point of view the opportunity costs of women are increased in many aspects including time, which are eventually considered as economic opportunities. Opportunity costs of children have therefore increased, and parents have been motivated to substitute child schooling for additional births. This study reviewing the economic based literature, aimed at investigating the economic determinants of fertility level in Iran. In so doing economic factors explaining fertility were analyzed controlling for other socio-demographic factors. In the study 3 main economic variables including Income, Household expenditures and Modern Appliances used by the family have come to consideration. Age at Marriage and Education were considered as control variables in the analyses. The analyses have been carried out in both individual and provincial level using data from Iranian household survey conducted in 2002. The study indicated that economic variables, Income, Household expenditures and utilizing modern appliances in home have significant level on fertility level.