Productivity pill turns 50
PUBLISHED : 01 Dec 2011 05:00:14 | Jeanne-Vida Douglas
It’s 50 years since the oral contraceptive pill was introduced in Australia and while much of the focus is on its social impact, the effect it has had on the economy has also been profound. In the 1960s, Australians were among the most enthusiastic adopters of “the pill” and from the moment it went on the market, the fertility rate began falling – from 3.5 babies per woman in 1961 to below the 2.1 replacement level in 1976.
Once women could spend less time having kids, they could spend more time in education or paid work, with female workforce participation jumping from 34 per cent in 1961 to 59 per cent in 2011. Labour productivity has also been affected because of the health benefits of oral contraceptives in terms of a reduction in period pain, anaemia, ovarian cysts and other conditions.
But now that the baby boomers who kicked off the contraceptive revolution are about to retire, the unintended consequences of flat fertility are now being felt: fewer young taxpayers to support their “pill-popping” parents.
Jeanne-Vida Douglas
BRW
Jeanne-Vida Douglas
BRW.com.au EditorSydney
Jeanne-Vida Douglas is a multi-award winning business journalist with a decade's experience covering the information technology sector. She holds tertiary qualifications in linguistics and literature, economics and IT, was named MediaConnect’s IT Journalist of the year for 2009 and has recently published The Profit Principle a book aimed at turning smart ideas into great businesses.
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