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Social security and female labor supply in China

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  • Gao, Han

Abstract

I develop a dynamic model of female labor supply, featuring human capital accumulation and intergenerational time transfer in the form of grandparental child care, to study how raising urban Chinese women’s social security eligibility age would affect their employment, human capital, and earnings. I find the policy reform encourages labor supply of older women but discourages labor supply of low-skilled young women with children as a result of children’s grandmothers working more and providing less child care. Furthermore, the effectiveness of policy in stimulating the labor supply and earnings of women depends on the degree of labor market frictions facing old age women after the policy change.

Suggested Citation

  • Gao, Han, 2025. "Social security and female labor supply in China," Journal of Economic Behavior & Organization, Elsevier, vol. 238(C).
    • Handle: RePEc:eee:jeborg:v:238:y:2025:i:c:s0167268125003221
    DOI: 10.1016/j.jebo.2025.107203
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    Keywords

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    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions

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