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

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  • Yuan Cao

Abstract

This study provides new evidence on on the causal effect of fertility on maternal labor supply in rural China, using the fact that in some parts of rural China couples are allowed to have a second child if their firstborn is female. Estimates show that a second child reduces maternal labor force participation by 4.6 percentage points, labor supply intensity (hours worked conditional on employment) by 1.4 h per week and monthly income by 54.5 Chinese Yuan (18.7 percent). Further, the labor supply of mothers whose husbands are rural-to-urban migrants is the most sensitive to having an additional child, likely because they have more difficulty balancing farming and childcare. Conversely, labor supply is not reduced by fertility for mothers living in three-generation families, most likely because grandparents can provide both time and money to help with childcare.

Suggested Citation

  • Yuan Cao, 2019. "Fertility and labor supply: evidence from the One-Child Policy in China," Applied Economics, Taylor & Francis Journals, vol. 51(9), pages 889-910, February.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:9:p:889-910
    DOI: 10.1080/00036846.2018.1502868
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    Cited by:

    1. Aolin Leng & Fuli Kang, 2022. "Impact of two-child policy on female employment and corporate performance: Empirical evidence from Chinese listed companies from 2010 to 2020," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.
    2. Wu, Xiaoyu, 2022. "Fertility and maternal labor supply: Evidence from the new two-child policies in urban China," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 584-598.
    3. XIE Mingjia & YIN Ting & ZHANG Yi & OSHIO Takashi, 2022. "The Hidden Cost of Having More Children: The Impact of Fertility on the Elderly's Healthcare Utilization," Discussion papers 22033, Research Institute of Economy, Trade and Industry (RIETI).
    4. Yujie Wang & Run Ge & Wenjing Gao & Dunzhe Tang, 2024. "How Does Fertility Policy Relaxation Affect Household Financial Asset Allocation? Evidence from the Universal Two-Child Policy in China," Sustainability, MDPI, vol. 16(3), pages 1-23, January.
    5. Ying Zhao & Lin Zhang & Yuanping Lu & Bo Wen, 2023. "More Rights but Less Gains: Relaxed Birth Control Policy and the Loss for Women," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 31(2), pages 159-191, March.
    6. Meng, Lina & Peng, Lu & Zhou, Yinggang, 2023. "Do housing booms reduce fertility intentions? Evidence from the new two-child policy in China," Regional Science and Urban Economics, Elsevier, vol. 101(C).

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