IDEAS home Printed from https://ideas.repec.org/a/kap/jfamec/v45y2024i3d10.1007_s10834-023-09915-x.html
   My bibliography  Save this article

Does Having More Children Affect Women’s Informal Employment Choices? Evidence from China

Author

Listed:
  • Yanhua Wu

    (Zhejiang A&F University
    Zhejiang A&F University)

  • Lingyun Tong

    (Zhejiang A&F University
    Zhejiang A&F University)

  • Yingying Yi

    (Nanjing University of Posts and Telecommunications)

Abstract

With the relaxation of the One-Child Policy in China, women are likely to face more conflicts between childcare and work. How to boost the fertility rate and facilitate the female labor supply has become an urgent issue in China. With data from the China Health and Nutrition Survey (CHNS) 1993–2015, this study explored the impact of having more than one child on women’s informal employment decisions using three-equation models. The models took into account the sample selection of working-age women in the labor force and the endogeneity of fertility decisions jointly. The results showed that women with more than one child were more likely to choose informal employment. The positive impact of having more children on women’s probability of informal employment was different for each group. Notably, the positive impact was stronger for women with low educational attainment, rural hukou, and especially for rural‒urban migrants. These results were robust to several alternative specifications. These findings suggest that with more children, women in China choose informal employment as a way of balancing work and family.

Suggested Citation

  • Yanhua Wu & Lingyun Tong & Yingying Yi, 2024. "Does Having More Children Affect Women’s Informal Employment Choices? Evidence from China," Journal of Family and Economic Issues, Springer, vol. 45(3), pages 562-578, September.
    • Handle: RePEc:kap:jfamec:v:45:y:2024:i:3:d:10.1007_s10834-023-09915-x
    DOI: 10.1007/s10834-023-09915-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10834-023-09915-x
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10834-023-09915-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yuyu Chen & Hongbin Li & Lingsheng Meng, 2013. "Prenatal Sex Selection and Missing Girls in China: Evidence from the Diffusion of Diagnostic Ultrasound," Journal of Human Resources, University of Wisconsin Press, vol. 48(1), pages 36-70.
    2. Cruces, Guillermo & Galiani, Sebastian, 2007. "Fertility and female labor supply in Latin America: New causal evidence," Labour Economics, Elsevier, vol. 14(3), pages 565-573, June.
    3. Meng, Chun-Lo & Schmidt, Peter, 1985. "On the Cost of Partial Observability in the Bivariate Probit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 26(1), pages 71-85, February.
    4. Daniel Aaronson & Rajeev Dehejia & Andrew Jordan & Cristian Pop-Eleches & Cyrus Samii & Karl Schulze, 2021. "The Effect of Fertility on Mothers’ Labor Supply over the Last Two Centuries [Semiparametric instrumental variables estimation of treatment response models]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 1-32.
    5. Bruce, Donald & Schuetze, Herbert J., 2004. "The labor market consequences of experience in self-employment," Labour Economics, Elsevier, vol. 11(5), pages 575-598, October.
    6. Shang-Jin Wei & Xiaobo Zhang, 2011. "The Competitive Saving Motive: Evidence from Rising Sex Ratios and Savings Rates in China," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 511-564.
    7. Mary A. Silles, 2016. "The impact of children on women’s labour supply and earnings in the UK: evidence using twin births," Oxford Economic Papers, Oxford University Press, vol. 68(1), pages 197-216.
    8. Lixing Li & Xiaoyu Wu, 2011. "Gender of Children, Bargaining Power, and Intrahousehold Resource Allocation in China," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 295-316.
    9. Angrist, Joshua D & Evans, William N, 1998. "Children and Their Parents' Labor Supply: Evidence from Exogenous Variation in Family Size," American Economic Review, American Economic Association, vol. 88(3), pages 450-477, June.
    10. Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas, 2009. "Sibling-sex composition and its effects on fertility and labor supply of Greek mothers," Economics Letters, Elsevier, vol. 102(3), pages 189-191, March.
    11. Amelie Constant, 2006. "Female Proclivity to the World of Business," Kyklos, Wiley Blackwell, vol. 59(4), pages 465-480, November.
    12. Williams, Donald R., 2000. "Consequences of self-employment for women and men in the United States," Labour Economics, Elsevier, vol. 7(5), pages 665-687, September.
    13. Margaret Maurer-Fazio & Rachel Connelly & Lan Chen & Lixin Tang, 2011. "Childcare, Eldercare, and Labor Force Participation of Married Women in Urban China, 1982–2000," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 261-294.
    14. Florian Noseleit, 2014. "Female self-employment and children," Small Business Economics, Springer, vol. 43(3), pages 549-569, October.
    15. Philip K. Robins & Charles Michalopoulos, 2002. "Employment and child-care choices of single-parent families in Canada and the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 465-493.
    16. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 791-821.
    17. Mark L. Bryan & Almudena Sevilla, 2017. "Flexible working in the UK and its impact on couples’ time coordination," Review of Economics of the Household, Springer, vol. 15(4), pages 1415-1437, December.
    18. Katherine Lim, 2019. "Do American mothers use self-employment as a flexible work alternative?," Review of Economics of the Household, Springer, vol. 17(3), pages 805-842, September.
    19. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    20. Jörg Schwiebert, 2015. "Estimation and interpretation of a Heckman selection model with endogenous covariates," Empirical Economics, Springer, vol. 49(2), pages 675-703, September.
    21. Liu, Zhiqiang, 2005. "Institution and inequality: the hukou system in China," Journal of Comparative Economics, Elsevier, vol. 33(1), pages 133-157, March.
    22. Anderson, Siwan & Eswaran, Mukesh, 2009. "What determines female autonomy? Evidence from Bangladesh," Journal of Development Economics, Elsevier, vol. 90(2), pages 179-191, November.
    23. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    24. Song, Yang, 2014. "What should economists know about the current Chinese hukou system?," China Economic Review, Elsevier, vol. 29(C), pages 200-212.
    25. Feinian Chen & Hui Liu & Kriti Vikram & Yu Guo, 2015. "For Better or Worse: The Health Implications of Marriage Separation Due to Migration in Rural China," Demography, Springer;Population Association of America (PAA), vol. 52(4), pages 1321-1343, August.
    26. Tami Gurley-Calvez & Amelia Biehl & Katherine Harper, 2009. "Time-Use Patterns and Women Entrepreneurs," American Economic Review, American Economic Association, vol. 99(2), pages 139-144, May.
    27. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    28. Jeff Grogger & Stephen G. Bronars, 2001. "The Effect of Welfare Payments on the Marriage and Fertility Behavior of Unwed Mothers: Results from a Twins Experiment," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 529-545, June.
    29. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
    30. Jorge M. Agüero & Mindy S. Marks, 2011. "Motherhood and Female Labor Supply in the Developing World: Evidence from Infertility Shocks," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 800-826.
    31. Robert Moffitt, 1984. "Profiles of Fertility, Labour Supply and Wages of Married Women: A Complete Life-Cycle Model," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 51(2), pages 263-278.
    32. Rachel Connelly, 1992. "Self-employment and providing child care," Demography, Springer;Population Association of America (PAA), vol. 29(1), pages 17-29, February.
    33. Julie H. Gallaway & Alexandra Bernasek, 2002. "Gender and Informal Sector Employment in Indonesia," Journal of Economic Issues, Taylor & Francis Journals, vol. 36(2), pages 313-321, June.
    34. Yi Chen & Yingfei Huang, 2020. "The power of the government: China's Family Planning Leading Group and the fertility decline of the 1970s," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 42(35), pages 985-1038.
    35. Pernilla Andersson Joona, 2017. "Are mothers of young children more likely to be self-employed? The case of Sweden," Review of Economics of the Household, Springer, vol. 15(1), pages 307-333, March.
    36. Jorge M. Aguero & Mindy S. Marks, 2008. "Motherhood and Female Labor Force Participation: Evidence from Infertility Shocks," American Economic Review, American Economic Association, vol. 98(2), pages 500-504, May.
    37. Lombard, Karen V, 2001. "Female Self-Employment and Demand for Flexible, Nonstandard Work Schedules," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 214-237, April.
    38. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-1475, September.
    39. Thornton, Arland & Lin, Hui-Sheng, 1995. "Social Change and the Family in Taiwan," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226798585, October.
    40. Fan, Yi & Yi, Junjian & Yuan, Ye & Zhang, Junsen, 2018. "The glorified mothers of sons: Evidence from child sex composition and parental time allocation in rural China," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 249-260.
    41. Macpherson, David A., 1988. "Self-employment and married women," Economics Letters, Elsevier, vol. 28(3), pages 281-284.
    42. Wellington, Alison J., 2006. "Self-employment: the new solution for balancing family and career?," Labour Economics, Elsevier, vol. 13(3), pages 357-386, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Katherine Lim, 2019. "Do American mothers use self-employment as a flexible work alternative?," Review of Economics of the Household, Springer, vol. 17(3), pages 805-842, September.
    2. Anastasia Semykina, 2018. "Self‐employment among women: Do children matter more than we previously thought?," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 33(3), pages 416-434, April.
    3. Joseph Boniface Ajefu, 2019. "Does having children affect women’s entrepreneurship decision? Evidence from Nigeria," Review of Economics of the Household, Springer, vol. 17(3), pages 843-860, September.
    4. Anna Baranowska-Rataj & Anna Matysiak, 2016. "The Causal Effects of the Number of Children on Female Employment - Do European Institutional and Gender Conditions Matter?," Journal of Labor Research, Springer, vol. 37(3), pages 343-367, September.
    5. Anna Baranowska, 2013. "The family size effects on female employment. Evidence from the “natural experiments” related to human reproduction," Working Papers 57, Institute of Statistics and Demography, Warsaw School of Economics.
    6. Guo, Rufei & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2018. "Fertility, household structure, and parental labor supply: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 145-156.
    7. Iva Trako, 2018. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," Working Papers halshs-01828471, HAL.
    8. Lars Kolvereid, 2018. "Entrepreneurship among parents," Journal of Innovation and Entrepreneurship, Springer, vol. 7(1), pages 1-14, December.
    9. Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2015. "Fertility, Household Structure, and Parental Labor Supply: Evidence from Rural China," IZA Discussion Papers 9342, Institute of Labor Economics (IZA).
    10. Finlay, Jocelyn E., 2021. "Women’s reproductive health and economic activity: A narrative review," World Development, Elsevier, vol. 139(C).
    11. Gong, Yifan & Stinebrickner, Ralph & Stinebrickner, Todd, 2022. "Marriage, children, and labor supply: Beliefs and outcomes," Journal of Econometrics, Elsevier, vol. 231(1), pages 148-164.
    12. Florian Noseleit, 2014. "Female self-employment and children," Small Business Economics, Springer, vol. 43(3), pages 549-569, October.
    13. Lundborg, Petter & Plug, Erik & Rasmussen, Astrid Würtz, 2014. "Fertility Effects on Female Labor Supply: IV Evidence from IVF Treatments," IZA Discussion Papers 8609, Institute of Labor Economics (IZA).
    14. Semih Tumen & Belgi Turan, 2023. "The effect of fertility on female labor supply in a labor market with extensive informality," Empirical Economics, Springer, vol. 65(4), pages 1855-1894, October.
    15. Besamusca, Janna & Tijdens, Kea & Keune, Maarten & Steinmetz, Stephanie, 2015. "Working Women Worldwide. Age Effects in Female Labor Force Participation in 117 Countries," World Development, Elsevier, vol. 74(C), pages 123-141.
    16. Darío Tortarolo, 2014. "Female Labor Supply and Fertility. Causal Evidence for Latin America," CEDLAS, Working Papers 0166, CEDLAS, Universidad Nacional de La Plata.
    17. Carl Magnus Bjuggren & Magnus Henrekson, 2022. "Female self-employment: prevalence and performance effects of having a high-income spouse," Small Business Economics, Springer, vol. 59(1), pages 163-181, June.
    18. Reuschke, Darja & Houston, Donald, 2020. "Revisiting the gender gap in commuting through self-employment," Journal of Transport Geography, Elsevier, vol. 85(C).
    19. de Jong, Eelke & Smits, Jeroen & Longwe, Abiba, 2017. "Estimating the Causal Effect of Fertility on Women’s Employment in Africa Using Twins," World Development, Elsevier, vol. 90(C), pages 360-368.
    20. Schmieder, Julia, 2021. "Fertility as a driver of maternal employment," Labour Economics, Elsevier, vol. 72(C).

    More about this item

    Keywords

    Fertility; Female informal employment; Selection bias; Endogeneity; Work-family balance;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jfamec:v:45:y:2024:i:3:d:10.1007_s10834-023-09915-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.