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The Impact of Fertility Policy Relaxation on Women's Income in Urban China
Huang Qian, Jin Xiaofei
Population Research
2022, 46 (6):
103-116.
China officially implemented the selective two-child policy and the universal two-child policy in 2013 and 2016, respectively. Fertility policy relaxation has far-reaching impacts on women in urban China. In the labor market, income is an essential indicator of labor market performance and employment quality, and women are paid for their labor through employment. With the staggered difference-in-difference (DID) model, the impact of fertility policy relaxation on the average monthly and hourly earnings of urban women in China is assessed using data from 2012, 2014, 2016, and 2018 China Family Panel Studies. We find that the twochild policy leads to a significant decrease of 12.36% in women's average monthly income and 11.37% reduction in average hourly earnings; the negative influence on income of women below 25 or those with no children is most pronounced, which suggests that the relaxation of fertility policy has exacerbated gender discrimination in the labor market, especially statistical discrimination.
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