Fertility and financial risk-taking
A recent study explores the relationship between fertility expectations and financial risk-taking. It finds that childless adults who do not expect children are significantly more likely to invest in stocks compared to those who expect children. The study suggests that declining fertility rates may lead to increased stock market participation among young adults.
- ▪Childless adults who do not expect children are 21-36% more likely to invest in stocks than those who expect children.
- ▪The effect of fertility expectations on financial risk-taking persists even when accounting for medical infertility.
- ▪Households expecting children report shorter financial planning horizons, which may explain their lower risk-taking.
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Fertility and financial risk-taking by Tyler Cowen May 21, 2026 at 2:39 pm We examine how fertility expectations influence financial risk-taking using nationally representative data from three countries. Our results indicate that childless adults who do not expect children are 21-36% more likely to invest in stocks than those who expect children, controlling for personal characteristics. This effect persists also when medical infertility instruments expectations. We find no similar effects for other savings categories, nor differences in self-reported risk tolerance. Households expecting children report shorter financial planning horizons, which may explain their lower risk-taking.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at Marginal Revolution.
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