Due to the positive correlation between population size and technological innovation, there exists a positive externality in fertility, which is intertemporal and inseparable across regions. Since the benefits of high fertility are reaped at the national level, the central government has the principal responsibilities to implement pronatalist policies. Policy design deviating this principle would distort the behaviors of local governments. In this context, a well-designed pronatalist policy should clearly define the responsibilities between the central and the local governments to achieve a mechanism with incentive compatibility at both the micro and macro level. The core of pronatalist policy is to resolve the conflicts between childbirth and female labor market participation and to prioritize those that both facilitate childbearing and improve women's competitiveness in the labor market. Personal income tax deduction is one of the policies that meets the above criteria. The top-level design should complete the policy framework to effectively include women of childbearing age and implement targeted policies based on the characteristics of different groups.

Early childhood education and care (ECEC) hinders women's labor market participation and career development, causing potential economic losses. The socialization of childcare services maybe a viable way to release female labor force. This article uses the national population and family dynamic monitoring survey data to examine the relationship between childcare burden, childcare behavior and women's performance in the labor market, explore the impact of childcare services on women's employment and income, and estimate the extent to which the childcare service system can promote female labor participation, which in turn lead to income improvement and economic growth. The results show that the childcare burden has significantly reduced the labor participation rate and income level of women. The socialization of childcare services can increase the labor participation rate of women by 2-3 percentage points, and the released labor supply and economic output account for 4-7 percent of the current total economic output of women. The comprehensive construction of the childcare service system for children aged 0-3 is an effective measure to promote gender equality and economic development, and an important policy to enhance human capital, promote labor participation, and actively respond to population ageing.