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Fertility and Female Labor Force Participation: Causal Evidence from Urban China

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  • He, Xiaobo
  • Zhu, Rong

Abstract

Using population census data, this paper examines the causal effect of childbearing on married women's labor force participation in urban China. To ameliorate the endogeneity of fertility, we exploit twin births as the instrument for the number of children. While the ordinary least squares estimates indicate that having one more child reduces female labor force participation by 6.7% and 8.5% in 1990 and 2000 respectively, the instrumental variable estimates suggest very small and insignificant effects for both years.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 44552.

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Date of creation: 29 Jan 2013
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Handle: RePEc:pra:mprapa:44552

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Keywords: Female labor force participation; Fertility; One-Child Policy;

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  1. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
  2. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.
  3. Li, Hongbin & Zhang, Junsen & Zhu, Yi, 2007. "The Quantity-Quality Tradeoff of Children in a Developing Country: Identification Using Chinese Twins," IZA Discussion Papers 3012, Institute for the Study of Labor (IZA).
  4. Mishra, Vinod & Smyth, Russell, 2010. "Female labor force participation and total fertility rates in the OECD: New evidence from panel cointegration and Granger causality testing," Journal of Economics and Business, Elsevier, vol. 62(1), pages 48-64, January.
  5. Jorge M. Aguero & Mindy S. Marks, 2008. "Motherhood and Female Labor Force Participation: Evidence from Infertility Shocks," American Economic Review, American Economic Association, vol. 98(2), pages 500-504, May.
  6. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
  7. Wei, Zheng & Hao, Rui, 2010. "Demographic structure and economic growth: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 38(4), pages 472-491, December.
  8. Joshua D. Angrist & Guido W. Imbens, 1995. "Identification and Estimation of Local Average Treatment Effects," NBER Technical Working Papers 0118, National Bureau of Economic Research, Inc.
  9. Guillermo Cruces & Sebastian Galiani, 2005. "Fertility and Female Labor Supply in Latin America: New Causal Evidence," Labor and Demography 0511011, EconWPA.
  10. Joyce P. Jacobsen & James Wishart Pearce III & Joshua L. Rosenbloom, 1999. "The Effects of Childbearing on Married Women's Labor Supply and Earnings: Using Twin Births as a Natural Experiment," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 449-474.
  11. Maurer-Fazio, Margaret & Connelly, Rachel & Lan, Chen & Tang, Lixin, 2009. "Childcare, Eldercare, and Labor Force Participation of Married Women in Urban China: 1982 - 2000," IZA Discussion Papers 4204, Institute for the Study of Labor (IZA).
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