POPULATION POLICY AND ITS INFLUENCES ON FEMALE LABOR SUPPLY: EVIDENCE FROM CHINA

Abstract

To evaluate the effects of population policy on labor supply in China, using the longitudinal data of the China Health and Nutrition Survey (CHNS) from 1989 to 2015, this paper investigates the influences of the total number of children and parity on the Chinese female labor supply including both participation in work (decision to work or not work) and employment status (to become an irregular worker or regular worker). The fixed effects model, the random effects model, and the instrumental variables method are used to address the heterogeneity and the endogeneity problems. The results show that as the total number of children increases, the probability of the mother becoming a regular worker may decrease, and the negative influence for the later births is greater than for the first birth. However, the influences of the total number of children and parity on women‟s participation in work are small. Additionally, the employment status of women in urban area and highly educated women are more likely to be influenced by higher parities.