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

Listed author(s):
  • Xiaobo He
  • Rong Zhu

Using population census data, this paper examines the causal effect of a second child on married women's labour force participation in urban China. To ameliorate the endogeneity of fertility, we exploit twin births as the source of variation in fertility. While the ordinary least squares estimates indicate that having one more child significantly reduces female labour force participation by around 6 and 9 percentage points in 1990 and 2000 respectively, our causal analyses suggest very small negative effect in 1990 (around 2 percentage points) and insignificant effect in 2000.

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File URL: http://hdl.handle.net/10.1111/manc.12128
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Article provided by University of Manchester in its journal The Manchester School.

Volume (Year): 84 (2016)
Issue (Month): 5 (September)
Pages: 664-674

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Handle: RePEc:bla:manchs:v:84:y:2016:i:5:p:664-674
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  1. Liu, Qian, 2012. "Unemployment and labor force participation in urban China," China Economic Review, Elsevier, vol. 23(1), pages 18-33.
  2. Cruces, Guillermo & Galiani, Sebastian, 2007. "Fertility and female labor supply in Latin America: New causal evidence," Labour Economics, Elsevier, vol. 14(3), pages 565-573, June.
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  14. 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.
  15. Yong Cai, 2008. "An assessment of China’s fertility level using the variable-r method," Demography, Springer;Population Association of America (PAA), vol. 45(2), pages 271-281, May.
  16. 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.
  17. Hongbin Li & Junsen Zhang & Yi Zhu, 2008. "The quantity-Quality trade-Off of children In a developing country: Identification using chinese twins," Demography, Springer;Population Association of America (PAA), vol. 45(1), pages 223-243, February.
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  19. Hyunbae Chun & Jeungil Oh, 2002. "An instrumental variable estimate of the effect of fertility on the labour force participation of married women," Applied Economics Letters, Taylor & Francis Journals, vol. 9(10), pages 631-634.
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