The government of Andhra Pradesh recently announced plans to implement the Draft Population Management Policy named Poshana - Shiksha - Suraksha from April 1, which aims to incentivise couples to have a third child. The policy proposes cash incentives of Rs 25,000 at the time of birth and Rs 1,000 in monthly assistance for the first five years, along with the offer of free education for the child up to the age of 18. 

This announcement is only the beginning of the quick-fix solutions proposed to address the complex issue of declining total fertility rates (TFR) that has become a matter of policy concern for many Indian states. In particular, all five southern states have a TFR of 1.5 or lower, which is comparable to those of many developed nations today.

In the past, these figures would have been celebrated for helping ease the burden of population and resources.

Beyond these short-term policies, declining fertility rates also have to be considered an indicator of a larger structural crisis of care. This article tries to address the various types of costs involved in raising children – not just monetary but also in terms of care responsibilities as well. Who bears these costs and how do they affect individual decision-making processes? 

The decisions about whether and when to have children are shaped not only by family preferences but also by the economic consequences associated with motherhood. 

A large body of research across various countries documents what is commonly referred to as the 'motherhood penalty' — the adverse impact of childbirth on women's labour market outcomes, particularly in terms of employment continuity, career progression, and earnings. As childcare largely remains a part of women’s responsibilities, motherhood often leads to interruptions in employment or slower wage growth. These labour market costs can significantly shape women's fertility choices. 

In India, this disadvantage is clearly visible. 

Research shows that the urban motherhood penalty is steep: women's wages fall sharply after childbirth, while men face no comparable decline. Strikingly, the wage penalty is even starker for highly educated women and those in regular or salaried employment than for........

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