Risk Behaviors of Only-Child Parents: Evidence from the One-Child Policy in China

Abstract

This paper examines the impact of having only one child on parental risk behaviors in a society where children serve as the bedrock for elderly support. Using variation in the One-Child Policy in China, we find that elderly parents with one child consistently show more risk avoidance behaviors in both health and finance domains. Moreover, the effect is intensified where the children-for-support culture is stronger and buffered where institutional elderly support is better available. Lastly, only-child parents also show stronger risk aversion in preferences. Together, the study underscores the role of family structure in shaping individual risk behaviors and preferences.

Keywords: risk behavior, risk preference, only child, fertility policy, elderly support

JEL Classification: D10, D15, D81, J13, I12, G11