Fertility rates are rarely discussed alongside wages, yet the two are more closely connected than they may first appear. The motherhood wage gap does not only affect women's earnings, it can also shape decisions about whether, and when, to have children.

Today, many women are acutely aware of the economic realities of motherhood. They know that childcare responsibilities still fall disproportionately on them, and that having children may slow down, or even derail, their career progression. Faced with these challenges, along with rising living costs and financial pressures such as housing loans, many couples are delaying parenthood or choosing to have fewer children altogether.

In some cases, women opt to have just one or two children; in others, they may decide not to have children at all. These choices are not simply personal, they are shaped by broader structural and economic constraints. As a result, the motherhood wage gap is increasingly seen not only as a labour market issue, but also as a factor influencing national fertility trends.

Malta and Europe: a declining trend

Across Europe, fertility rates have been steadily declining, and Malta stands out as one of the most striking examples. In 2020, France recorded the highest fertility rate in the European Union at 1.83 children per woman. At the other end of the spectrum was Malta, with just 1.13, one of the lowest rates in the EU.

The reasons behind Malta's low fertility rate are complex and multifaceted. Over the years, the Maltese government has introduced several measures aimed at encouraging both higher birth rates and greater female participation in the labour market. These include free childcare services and tax systems designed to ensure that women's employment does not disadvantage household income.

Yet, despite these efforts, the gender employment gap in Malta remains relatively high, and fertility rates continue to lag behind. This suggests that increasing women's participation in the workforce alone is not enough to encourage higher birth rates. In fact, the relationship appears to be more nuanced: where women struggle to balance work and family life, fertility rates may actually decline further.

The cost of raising children

Economic factors also play a crucial role. Research indicates that fertility rates often decline as household income rises, a trend partly explained by the increasing costs associated with raising children. From childcare and education to housing and daily living expenses, the financial burden of parenthood has grown significantly.

In Malta, this pressure is compounded by inflation and the rising cost of living, which can make starting a family feel financially daunting. For many couples, the decision to have children is no longer just about personal readiness, but also about economic feasibility.

Other structural factors may also contribute to lower fertility rates. These include an ageing population, delayed motherhood, and the growing number of women pursuing higher education and career development. In Malta, women under the age of 34 are now more likely than men to hold tertiary qualifications. While this represents important progress in gender equality, it may also lead to postponed childbearing, as women prioritise career stability before starting a family.

However, delaying motherhood comes with its own challenges. Medical evidence shows that fertility declines with age, particularly after the age of 30, making it more difficult for women to conceive later in life.

Policies, culture, and family life

Fertility trends are also shaped by cultural expectations and policy frameworks. In many Western countries, traditional gender roles still influence how care responsibilities are divided within households. Women often remain the primary caregivers, even when they are employed, which can discourage them from having larger families.

Experts argue that fertility rates are more likely to improve when policies actively support both parents, not just mothers. Measures such as paid parental leave, shared childcare responsibilities, flexible working arrangements, and affordable childcare services can make a significant difference. Importantly, policies that encourage fathers to take a more active role in caregiving have been shown to support both higher fertility rates and greater gender equality in the workplace.

Malta has made progress in this area. Parents are entitled to paid parental leave, and free childcare services are widely available. However, the effectiveness of these measures depends on how they are used in practice. If women continue to carry the bulk of caregiving responsibilities, the underlying inequalities remain unchanged.

Lessons from across Europe

Looking beyond Malta, broader European trends reveal a consistent pattern. Since the 1980s, fertility rates have declined across most EU countries, particularly in Mediterranean nations. Malta, Spain, Italy, and Greece have all experienced significant drops, reflecting similar economic and cultural pressures.

By contrast, some Nordic countries have managed to stabilise, or even slightly increase, their fertility rates. Countries such as Sweden and Denmark have implemented policies that promote shared parental responsibilities and support work-life balance. In Sweden, for example, generous parental leave schemes encourage fathers to take time off work, helping to redistribute caregiving duties and enabling more women to remain active in the labour market.

These examples highlight an important point: fertility rates are not fixed. They can be influenced by policies that make it easier for individuals to combine work and family life without facing financial or professional penalties.

Looking ahead

The link between fertility rates and the motherhood wage gap underscores a broader challenge facing modern societies. When women are forced to choose between career and family, both individuals and economies lose out.

Encouraging higher fertility rates is not simply about financial incentives, it requires creating a system where parenthood does not come at the expense of economic security or career progression. Accessible childcare, flexible work arrangements, and a more equal distribution of care responsibilities are all part of the solution.