ONE-CHILD POLICY IN CHINA Mofei Hou Alexander Valtsev

ONE-CHILD POLICY IN CHINA Mofei Hou Alexander Valtsev

BACKGROUND • • • Introduced in 1970 s to reduce fertility rates Currently applies only to urban population Two- and three-children limit in rural areas Does not apply to minorities N/A to people of dangerous occupations

BACKGROUND (CONTINUED) • • • Penalty for exceeding limit: large fines Caused male-to-female ratio to get skewed Gender preference for male children History and tradition plays a key role Geography and occupation are determinants

QUALITY VS. QUANTITY • • • Two control groups involved in the experiment First group: one-child Second group: twins/two children Only female child – good academics Bottom line: quantity leads to poorer results Conclusion: trade-off exists

QUALITY VS. QUANTITY (CONTINUED) • • • Opposite opinion from author H. Liu: assumptions Quantity impacts physical appearance Inconclusive about educational achievements Bottom line: weak increase in human capital Policy was not as successful as anticipated

EDUCATION • • • Before 1978 – emphasis on public childcare Market economy – hike in privatization Gender inequity in higher education High dropout rates among women in high school Lower college enrolment compared to males

EDUCATION (CONTINUED) • • • Two factors at play for rural inhabitants Parental wishes and family income Daughters are junior to sons in budget allocation One-child policy helps if only child is a female Time shows gap is narrowing for villagers

CAREER • • • Women hit hard with decrease in public childcare Labour protection laws in China in 1940 s Result: higher entrepreneurship among women International involvement in gender equality Goal: “socialist harmonious society”

POLICY INTENT • The goals to the one-child policy is to decrease fertility rates • Important as it allows proper levels of labor market participation for both genders • Proper allocation of household income to one child allows for less pressure for parents to provide (Education/Child Care)

POLICY MAKING LAWMAKERS’ OPINION • Policy should be universally accepted • Limits should still be set for minority groups and individuals with dangerous occupations • Progressive fine system, fine as a percentage of the couples combined income

POLICY RECOMMENDATIONS • Increased involvement of government at all levels to reduce the likelihood of the missing girl/women phenomenon • Increase the amount of publicly funded education for preschoolers • Boost in childcare = increase in women’s LFP • Total increase in human capital to be achieved

CURRENT STATE OF POLICY • • • November 2013 amendment: two children allowed Fine print: if one of the parents is an only child Original policy – quite successful; fines work Amendment – too little time to assess Expected: higher labour force participation Problem: job creation to meet supply