The Consequences of Having a Son on Family Wealth in Urban China

16 Pages Posted: 22 May 2017

See all articles by Lixing Li

Lixing Li

Peking University - China Center for Economic Research (CCER)

Xiaoyu Wu

Central University of Finance and Economics (CUFE)

Date Written: June 2017

Abstract

Due to the influence of traditional culture, housing is regarded as a status good and plays an important role in improving male competitiveness in the marriage market in China. Using data from a recent household survey, we find that urban families with a son are more likely to own a house, with a larger size, and at an earlier date. With the booming of the Chinese housing market since the late 1990s as background, having a son thus generates a substantial effect on family wealth through the channel of house ownership. Using the gender of the first‐born child as an instrument, our estimation shows that families with a son have 188 thousand RMB yuan higher housing wealth on average.

Keywords: child gender, China, income inequality, real estate market, wealth accumulation

JEL Classification: J16, R21, O18

Suggested Citation

Li, Lixing and Wu, Xiaoyu, The Consequences of Having a Son on Family Wealth in Urban China (June 2017). Review of Income and Wealth, Vol. 63, Issue 2, pp. 378-393, 2017. Available at SSRN: https://ssrn.com/abstract=2971273 or http://dx.doi.org/10.1111/roiw.12215

Lixing Li (Contact Author)

Peking University - China Center for Economic Research (CCER) ( email )

Beijing, 100871
China

Xiaoyu Wu

Central University of Finance and Economics (CUFE) ( email )

Beijing, Beijing
China

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