Two-child Policy, Gender Income and Fertility Choice In China

Liu, Tao-Xiong and Liu, Jun (2017): Two-child Policy, Gender Income and Fertility Choice In China.

Abstract

We build up a three-period overlapping generation model to explore the effectiveness of fertility policy and the corresponding factors affecting the fertility choices in China. The results show that there is a significant U-shaped relationship between female income and the two-child fertility choice, and a significant positive relationship between male income and the two-child fertility choice, and the relationship between the price of other child care services and the two-child fertility choice is negatively correlated. The analysis of the effectiveness of the current universal two-child policy suggests that there exists a threshold of the fertility policy estimated to be between 1 and 2. Therefore, even if the two-child policy is further relaxed to a three child policy, it will exert little influence on fertility choice. Thus other forms of fertility policy should be combined to improve fertility rate.

• Item Type: MPRA Paper
• Language: English
• Keywords: two-child policy; male and female income; threshold of the fertility policy
• Subjects: J - Labor and Demographic Economics > J1 - Demographic Economics > J13 - Fertility ; Family Planning ; Child Care ; Children ; Youth; J - Labor and Demographic Economics > J1 - Demographic Economics > J18 - Public Policy; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure ; Wage Differentials

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