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Two-child policy, gender income and fertility choice in China

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  • Liu, Jun
  • Liu, Taoxiong

Abstract

We construct a three-period overlapping generation model to explore the effectiveness of the fertility policy and the factors affecting the fertility choices in China. The results show that there is a significant U-shaped relationship between female income and two-child fertility choice. The analysis of the effectiveness of the universal two-child policy suggests that a threshold exists for the fertility policy that is estimated to be between 1 and 2. Therefore, even if the two-child policy is further relaxed, it will exert little influence on fertility choice. Thus, other forms of fertility policies should be combined to improve the fertility rate.

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  • Liu, Jun & Liu, Taoxiong, 2020. "Two-child policy, gender income and fertility choice in China," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 1071-1081.
    • Handle: RePEc:eee:reveco:v:69:y:2020:i:c:p:1071-1081
    DOI: 10.1016/j.iref.2018.12.009
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    Cited by:

    1. Yang, Xiaolan & Hong, Xiaoyue & Li, Wenchao, 2023. "“Only children” and entrepreneurship in China: Spillover effects and mechanisms," Pacific-Basin Finance Journal, Elsevier, vol. 79(C).
    2. Yiqing Xing & Clifford Silver Tarimo & Weicun Ren & Liang Zhang, 2022. "The Impact of Health Insurance Policy on the Fertility Intention of Rural Floating Population in China: Empirical Evidence from Cross-Sectional Data," IJERPH, MDPI, vol. 20(1), pages 1-16, December.
    3. Kuhn, Britta & Neusius, Thomas, 2022. "Will China's three-child policy defuse the demographic time bomb?," wifin Working Paper Series 14/2022, RheinMain University of Applied Sciences, Wiesbaden Institute of Finance and Insurance (wifin).
    4. Xinhua Li & Yancun Fan & Sawitri Assanangkornchai & Edward B McNeil, 2019. "Application of the Theory of Planned Behavior to couples' fertility decision-making in Inner Mongolia, China," PLOS ONE, Public Library of Science, vol. 14(8), pages 1-14, August.
    5. Qiang He & Xin Deng & Chuan Li & Zhongcheng Yan & Yanbin Qi, 2022. "The Impact of Rural Population Mobility on Fertility Intention under the Comprehensive Two-Child Policy: Evidence from Rural China," IJERPH, MDPI, vol. 19(12), pages 1-17, June.
    6. Feng, Zhenhua & Lien, Jaimie W. & Zheng, Jie, 2020. "Flexible or mandatory retirement? Welfare implications of retirement policies for a population with heterogeneous health conditions," International Review of Economics & Finance, Elsevier, vol. 69(C), pages 1032-1055.

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    More about this item

    Keywords

    Two-child policy; Male and female income; Threshold of the fertility policy;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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