Impact of Fertility on the Employment of Women under the Second-Child Policy in China

Abstract

Promoting population growth to mitigate aging is one of the current policy priorities of the Chinese government. In 2015, China fully implemented the two-child policy. At the same time, it is unclear whether this policy shift will put more pressure on working mothers. A substantial literature documents that working mothers encounter systematic disadvantages in hiring, pay, and benefits relative to childless women. To study these effects on the Chinese labor market, this thesis will study the impact of fertility on selected employment outcomes of women under the second-child policy using the Chinese General Social Survey (CGSS) 2017. My findings show that women with two or more children are less likely to be employed. As expected, these effects are stronger among women at a lower educational level or higher household income level. My results underscore the unequal distribution of socio-economic burdens – putting women at disadvantage – that result from this policy. From a policy perspective, this implies that the Chinese government might consider complementing this policy shift with offering additional child care or maternity benefit and protective labor regulations to reduce the burden of motherhood.