Fertility and labor supply: evidence from the One-Child Policy in China

Cao, Yuan

doi:10.1080/00036846.2018.1502868

Cited by 19 publications

(12 citation statements)

References 31 publications

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“…Some studies also examined how the relaxation policy in rural areas affects parental labor supply. Cao (2018) find that the opportunity to have a second child reduces female labor supply and income. For females whose husbands work in cities, it is difficult for them to balance agricultural production and childcare.…”

Section: The Impact Of the Relaxation Of The One-child Policymentioning

confidence: 99%

“…For example, the investment in education and human capital level would be lower for the individuals in a family that is allowed to have a second child under the One-and-A-Half-Child Policy [Liu (2014), Qian (2009)]. Some studies investigate the relationships between fertility and parental labor supply under the relaxation population policy [Guo et al (2018), Cao (2018)]. These studies generally focus on the short-term impact of population policies.…”

Section: Introductionmentioning

confidence: 99%

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The impact of the relaxation of the One-Child Policy on employment

Yan²

2023

J. Dem. Econ.

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This paper examines how number of siblings affects employment under the relaxation of the One-Child Policy in China. We explore the One-and-A-Half-Child Policy in 1980s and examine its long-term impact on siblings and employment. With the data from 2010–2018 China Family Panel Studies, we find that individuals tend to have a larger number of siblings and have a higher probability of working in the places where the One-and-A-Half-Child Policy was implemented earlier. Using the degree of the impact of this policy as an instrumental variable for number of siblings, we find that one more sibling would increase the likelihood of working by 9.0 percentage points and increase the likelihood of working in the non-agricultural sector by 5.1 percentage points. Females are more affected by the relaxation than males. We also discuss the major mechanisms through which siblings affect employment. We find that the care-sharing effect of siblings increases labor supply and the social network effect of siblings brings more job opportunities and increases employment. The One-and-A-Half-Child Policy improves the labor market outcomes through both the channel of sharing care and the channel of social network.

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Section: The Impact Of the Relaxation Of The One-child Policymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of the relaxation of the One-Child Policy on employment

Yan²

2023

J. Dem. Econ.

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“…The literature on female employment primarily includes the study of the impact of reproductive behaviour on female labour supply, the impact of female structural proportion on organisational performance, and employment discrimination. Using 2005 Chinese census data, Cao (2019) demonstrated that the labour force participation of mothers with two children decreased by 4.6 percentage points and labour supply intensity (working hours) decreased by 1.4 h. Li (2021) reviewed relevant studies on China's two-child policy and found that this policy could promote the expansion of China's labour market and economic development. found that public sector households where the first child is a daughter (husbands working in the public sector) have fewer children and wives exhibit a greater labour supply than in non-public sector households where the first child is a son.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Second, ascertaining whether women choose to give birth due to low productivity or fertility reduces female productivity is impossible (Bloom et al, 2009;Yang, 2017). Third, prior studies mainly used census data (Glauber, 2007;van Steenbergen and Ellemers, 2009;Daouli et al, 2009;Cao, 2019), questionnaires, and survey data (Meng and Lyu, 2022;Huang, 2018;Zhuang, 2020Zhuang, , 2022, or laboratory data (Woolley et al, 2010;Hoogendoorn et al, 2013). These censuses were conducted only every few years, and given the differences between subjective perception and objective existence in the questionnaire surveys, laboratory data can neither consider fertility's impact on women's output nor provide direct data support for women's employment, fertility, and productivity levels.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of two-child policy on female employment and corporate performance: Empirical evidence from Chinese listed companies from 2010 to 2020

Leng

Kang

2022

Humanit Soc Sci Commun

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In 2013, the ‘Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform’ initiated the ‘selective two-child policy’, which allowed married couples to have two children if one of the parents was a single child. In the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China in 2015, a decision was made to implement the policy that a couple can have two children; in 2016, the universal two-child policy was fully implemented. This study used female employment data disclosed by Chinese listed companies from 2010 to 2020, constructed a two-way fixed-effect model of time and industry, and empirically tested the impact of the two-child policy on female employment and corporate performance. The empirical test revealed that the higher the proportion of employed female workers, the better the firm’s performance. Expanding the scope of the two-child policy exhibited no reduction in the proportion of female employment, but weakened the positive effect of hiring female employees on corporate performance. Specifically, we found that firms with higher rates of female employment exhibit lower costs, and this low-cost effect disappears with the expansion of the scope of the second-child policy. This indicates that the economic benefits of female employment for firms result from wage discrimination. This study provides a theoretical and practical basis for safeguarding women’s reproductive and fair employment rights and promoting sustainable social development.

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“…Secondly, given China's vast population and status as the country with the largest elderly population, changes in China's fertility policy will have profound impacts both domestically and globally. In addition to the impact of China's fertility policy on sex ratio [15,16], population structure and economy [17], outcomes [18], labor supply [19], and household debt [20], our study combines fertility policy with a new field-household financial asset allocation decision, which greatly enriches the research on this topic. Both fertility policy and household financial asset allocation are important topics that affect sustainable economic development, and numerous studies have also established a close link between financial development and subsequent economic growth [21,22].…”

Section: Introductionmentioning

confidence: 99%

How Does Fertility Policy Relaxation Affect Household Financial Asset Allocation? Evidence from the Universal Two-Child Policy in China

Wang,

Ge,

Gao

et al. 2024

Sustainability

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Both fertility policy and the healthy development of financial markets are important topics for sustainable economic and social development. By using the difference-in-difference (DID) model, this paper investigates how the universal two-child policy (UTCP) in China aiming to improve fertility affects household financial asset allocation, based on the China Family Panel Studies (CFPS) data from 2010 to 2018. The results show that the implementation of UTCP has a significant negative impact on household risk asset holdings. Specifically, the policy decreases the probability of households participating in the financial market by 3.1 percentage points, reduces the total value of risk assets held by 50.2%, and lowers the proportion of risk asset investment by 1.76 percentage points. Mechanism analysis suggests that the implementation of the policy has a significantly negative impact on labor market outcomes for women, which decreases household income and increases the time and effort spent on caring for children. As a result, the financial resources available for household financial asset investment are diminished, and the time for activities such as information gathering and financial asset transactions is squeezed out, ultimately leading to a decrease in household risk asset investment. Heterogeneity analysis reveals that households with self-employed wives (higher income instability), households without a co-resident status with grandparents (more time spent on childcare), and high-income households (stronger willingness to have more children) are more affected by the policy. This study provides new supplements on how fertility policies affect the allocation of household financial assets and proposes constructive suggestions on how to establish a comprehensive system of childcare welfare and alleviate the economic pressure of family childcare in developing countries.

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Fertility and labor supply: evidence from the One-Child Policy in China

Cited by 19 publications

References 31 publications

The impact of the relaxation of the One-Child Policy on employment

The impact of the relaxation of the One-Child Policy on employment

Impact of two-child policy on female employment and corporate performance: Empirical evidence from Chinese listed companies from 2010 to 2020

How Does Fertility Policy Relaxation Affect Household Financial Asset Allocation? Evidence from the Universal Two-Child Policy in China

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