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Little emperors in the workplace: Labor market consequences of China's one-child policy
Ist Teil von
China economic review, 2023-08, Vol.80, p.101985, Article 101985
Ort / Verlag
Elsevier Inc
Erscheinungsjahr
2023
Link zum Volltext
Quelle
Elsevier ScienceDirect Journals Complete
Beschreibungen/Notizen
What is the impact of China's One-Child Policy on the labor market outcomes of the only children that it engendered? This paper quantifies the wage income gap between only children and their peers (i.e. those with siblings), and uncovers the channels that underlie it. While only children receive higher wage income on average, we find that this only-child premium disappears completely once their superior schooling attainment and family background are accounted for. Moreover, we learn that the One-Child Policy resulted in a negative only-child effect on wage income, after conditioning on pre-determined characteristics; this may be due to only children lacking socio-emotional attributes that are valued in the labor market. Our results deliver important insights for China as only children continue to dominate its labor force at a rapid pace.
•We quantify an only-child wage premium (relative to peers with siblings), and uncover the channels that underlie it.•The only-child wage premium is fully explained by only children having superior schooling attainment and family background.•A causal effect is retrieved using variation from the OCP across birth cohorts, regions, and provincial policy strictness.•The procedure reveals a negative only-child effect on wage income, conditional on background characteristics.•Negative effect is likely driven by the inferior socio-emotional attributes of only children.