Sanitation and work time: Evidence from the toilet revolution in rural China

In 2020, 46% of the global population lacked safely managed sanitation services. Poor sanitation may lead to health problems and restrict economic activities. This study is the first to focus on the government-subsided Toilet Revolution in rural China and empirically investigates the causal effects of sanitation coverage increase on labor supply in developing countries. Using the China Health and Nutrition Survey data, we exploit the temporal and regional variation during the revolution and employ a difference-in-differences methodology. Our study finds that rural households with access to clean flush toilets significantly increase their work time by 0.253–0.431 h/day, and the effects are more prominent among women than men. As for the mechanism, clean toilets significantly decrease housework related to cleaning the house and raising livestock and poultry, allowing people to reallocate their time and invest more into work, which is more salient for women. Our findings highlight the importance of sanitation coverage in improving the economic outcomes in the rural areas of China. For policymakers concerned with the provision of sanitary facilities and the supply of labor force in developing countries, this study indicates that improved sanitation facilities also unexpectedly increase labor supply, particularly for women.