Effects of School Closure on Household Labor Supply: Evidence from Rural China

50 Pages Posted: 15 Oct 2019 Last revised: 16 Nov 2020

See all articles by Gang Xie

Gang Xie

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management

Lei Zhang

Antai College of Economics and Management, Shanghai Jiao Tong University

Date Written: October 5, 2020

Abstract

This paper studies the effects of school closure on household labor supply exploiting China’s large-scale rural primary school closing during the early 2000s. Using the CHNS 1991-2006 and CHIP 2007-2008 datasets and a difference-in-differences approach, we find that school closure increases female total annual income by nearly 40 percent, which comes from increases in wage income. We further show that the significant positive impacts on female income are attributable to their migration responses: females tend to engage in temporary rural-urban migration to care for children following school closure. We find no effects on male income and migration decisions. Our findings support the unitary model of household.

Keywords: school closure, childcare, household labor supply, migration, rural China

JEL Classification: I25; I28; J22; J61

Suggested Citation

Xie, Gang and Zhang, Lei, Effects of School Closure on Household Labor Supply: Evidence from Rural China (October 5, 2020). Available at SSRN: https://ssrn.com/abstract=3464744 or http://dx.doi.org/10.2139/ssrn.3464744

Gang Xie

Shanghai Jiao Tong University (SJTU) - Antai College of Economics and Management ( email )

No.535 Fahuazhen Road
Shanghai Jiao Tong University
Shanghai, Shanghai 200052
China

Lei Zhang (Contact Author)

Antai College of Economics and Management, Shanghai Jiao Tong University ( email )

HOME PAGE: http://www.acem.sjtu.edu.cn/en/faculty/zhanglei.html

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