Fertility, Household Structure, and Parental Labor Supply: Evidence from Rural China

34 Pages Posted: 22 Sep 2015

See all articles by Hongbin Li

Hongbin Li

Chinese University of Hong Kong - Department of Economics

Junjian Yi

University of Chicago

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics; IZA Institute of Labor Economics

Abstract

This paper tests the effects of fertility on household structure and parental labor supply in rural China. To solve the endogeneity problem, we use a unique survey on households with twin children and a comparison group of non-twin households. The ordinary least squares estimates show a negative correlation between fertility and parental labor supply. Using twinning as a natural experiment, we do not find evidence on the negative effects of fertility on parental labor supply. By contrast, we find that the twinning-induced increase in fertility enhances significantly the coresidence of grandparents. The results remain robust when we use the Chinese 1990 population census. We suggest that the negative effects of fertility on parental labor supply are mitigated by the childcare provided by grandparents. Our results have important implications for population and public childcare policies.

Keywords: fertility, parental labor supply, household structure

JEL Classification: J13, J18, J22, O10

Suggested Citation

Li, Hongbin and Yi, Junjian and Zhang, Junsen, Fertility, Household Structure, and Parental Labor Supply: Evidence from Rural China. IZA Discussion Paper No. 9342, Available at SSRN: https://ssrn.com/abstract=2663772

Hongbin Li (Contact Author)

Chinese University of Hong Kong - Department of Economics ( email )

Shatin, N.T.
Hong Kong

Junjian Yi

University of Chicago ( email )

Junsen Zhang

The Chinese University of Hong Kong (CUHK) - Department of Economics ( email )

Shatin, N.T.
Hong Kong
852-2609-8186 (Phone)
852-2603-5805 (Fax)

HOME PAGE: http://www.cuhk.edu.hk/eco/staff/jszhang/jzhang.htm

IZA Institute of Labor Economics

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