The Impact of Fertility Relaxation on the Gender Wage Gap

62 Pages Posted: 10 Jan 2020 Last revised: 11 Apr 2024

See all articles by Sumit Agarwal

Sumit Agarwal

National University of Singapore

Keyang Li

University of International Business and Economics (UIBE) - School of International Trade and Economics

Yu Qin

National University of Singapore (NUS) - Department of Real Estate

Jing Wu

Tsinghua University - Hang Lung Center for Real Estate; Tsinghua University - Department of Construction Management

Jubo Yan

Nanyang Technological University - School of Social Sciences

Date Written: December 20, 2019

Abstract

In this paper, we study the immediate impact of fertility relaxation on the gender wage gap. We explore a 2013 policy shock that relaxed the One-Child Policy in China. Using an employer-employee matched administrative data, we show that after the policy shock, the salary of female new hires is reduced by 2.7% relative to the salary of male new hires, equivalent to a 47% increase in the gender wage gap in the data. The effect is more pronounced for female new hires aged below 35, implying the salary reduction is related to concerns about the increasing fertility of females.

Keywords: One-Child Policy; Gender Wage Gap; Labor Market

JEL Classification: J13; J18; J20

Suggested Citation

Agarwal, Sumit and Li, Keyang and Qin, Yu and Wu, Jing and Yan, Jubo, The Impact of Fertility Relaxation on the Gender Wage Gap (December 20, 2019). Available at SSRN: https://ssrn.com/abstract= or http://dx.doi.org/10.2139/ssrn.3507515

Sumit Agarwal (Contact Author)

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

Keyang Li

University of International Business and Economics (UIBE) - School of International Trade and Economics ( email )

10 East Huixin Street
Chaouang District
Beijing, 100029
China

Yu Qin

National University of Singapore (NUS) - Department of Real Estate ( email )

4 Architecture Drive
Singapore 117566
Singapore

Jing Wu

Tsinghua University - Hang Lung Center for Real Estate ( email )

HeShanHeng Building
Beijing, 100084
China

HOME PAGE: http://thuwujing.net

Tsinghua University - Department of Construction Management ( email )

Heshanheng Building
Tsinghua University
Beijing, 100084
China

HOME PAGE: http://thuwujing.net

Jubo Yan

Nanyang Technological University - School of Social Sciences ( email )

HSS 04-68, 14 Nanyang Drive
Singapore, 639798
Singapore

HOME PAGE: http://juboyan.weebly.com

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