The Effects of Relaxing the One-Child Policy

Abstract

This paper examines the early effects of dismantling the one-child (fertility) policy, which China relaxed in 2013 and eliminated prior to 2017. Birth rates, female labor force participation, and saving behavior have already changed. Between 2015 and 2017, the proportion of households with children having more than one child increased by at least five percent, more than double the increase from 2013 to 2015. Among households adding another child, saving rates and female labor force participation significantly decreased.

Keywords: Fertility Policy, Saving, Labor Supply, China, Demographics

JEL Classification: D12, D91, E21, F63, J11, O12