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The effect of family size on education: new evidence from China's one-child policy

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  • Argys, Laura M.
  • Averett, Susan L.

Abstract

Economists theorize that the inverse relationship between income and family size reflects a trade-off between child quality and quantity. Testing this hypothesis requires addressing the simultaneity of the quality and quantity decisions. The unanticipated birth of twins and sex composition of the first two children have been used as the exogenous variation in family size with mixed results. We exploit the One-Child Policy (OCP) in China, which exogenously reduced fertility, and examine how the OCP affected the education of Chinese migrants to the USA. Using the American Community Survey and a difference-in-differences strategy, we find higher levels of education for Chinese migrants born after the OCP compared with their counterparts from other East Asian countries. This finding provides additional support for the existence of a quality-quantity trade-off.

Suggested Citation

  • Argys, Laura M. & Averett, Susan L., 2019. "The effect of family size on education: new evidence from China's one-child policy," Journal of Demographic Economics, Cambridge University Press, vol. 85(1), pages 21-42, March.
    • Handle: RePEc:cup:demeco:v:85:y:2019:i:1:p:21-42_2
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    Cited by:

    1. Chu, Yihe & Li, Yujia & Che, Ming, 2024. "Population aging and the dynamics of the skill income gap: An analysis of a multiple mediation effect," Finance Research Letters, Elsevier, vol. 62(PB).
    2. Lin, Siyuan & Argys, Laura M. & Averett, Susan L., 2023. "Exposure to the One-Child Policy and Fertility among Chinese Immigrants to the US," IZA Discussion Papers 16329, Institute of Labor Economics (IZA).
    3. Kaat Van Hoyweghen & Janne Bemelmans & Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2023. "Small Family, Happy Family? Fertility Preferences and the Quantity–Quality Trade-Off in Sub-Saharan Africa," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(6), pages 1-35, December.

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