In this paper, we study the impact of business cycle on the fertility rates in the United
States. More specifically, we explore the relationship between whites and blacks, and investigate
whether the effects of business cycle differ across race groups. Our findings show pro-cyclical
responses of fertility decisions. In other words, higher birth rates associate with economic booms
and lower birth rates associate with economic downturns. In addition, we find that on average,
whites exhibit higher pro-cyclical responses than blacks.