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Relative Earnings of Husbands and Wives in Urban China

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  • Hongbin Li
  • Lai Ting Sin
  • Junsen Zhang
  • Yaohui Zhao

Abstract

This paper studies the relative contribution of husbands and wives to the family income in the process of economic transition by using the Chinese Urban Household Survey data from 1988 to 1999. We find that, contrary to the experience of western countries, the share of wives¡¦ labor earnings in urban China tends to decline slightly over time and the share of husbands¡¦ labor earnings is stable. This implies that the role of urban Chinese husbands as the main financial supporters of their families becomes relatively more important during economic transition. We argue that this trend may have reflected the restoration of the functions of household production and labor market in the process of economic transition. This restoration allows households to allocate time, effort and human capital investment for each household member and for each household and market activity in a more efficient way. Our further empirical analysis suggests that at least two factors have accounted for the strengthening of the relative importance of husbands in contributing to family income in urban China: 1) the enlargement of the positive effect of children on husbands and the opposite effect for wives; and 2) the shrinkage of the positive income effect on the leisure of husbands.

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  • Hongbin Li & Lai Ting Sin & Junsen Zhang & Yaohui Zhao, 2005. "Relative Earnings of Husbands and Wives in Urban China," Discussion Papers 00014, Chinese University of Hong Kong, Department of Economics.
    • Handle: RePEc:chk:cuhkdc:00014
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    1. Gary S. Becker, 1981. "A Treatise on the Family," NBER Books, National Bureau of Economic Research, Inc, number beck81-1.
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    1. Zhao, Yucong & Ye, Bing & Shi, Jinchuan, 2022. "Gender identity, preference, and relative income within households," China Economic Review, Elsevier, vol. 71(C).
    2. Han Dongcheng & Kong Fanbo & Wang Zixun, 2021. "Gender identity and relative income within household: Evidence from China," Papers 2110.08723, arXiv.org.
    3. Li, Chao & Sun, Daoming, 2023. "Women’s bargaining power and spending on children’s education: Evidence from a natural experiment in China," International Journal of Educational Development, Elsevier, vol. 100(C).
    4. Stefan Gravemeyer & Thomas Gries & Jinjun Xue, 2011. "Income Determination and Income Discrimination in Shenzhen," Urban Studies, Urban Studies Journal Limited, vol. 48(7), pages 1457-1475, May.
    5. Stefan Gravemeyer & Thomas Gries & Jinjun Xue, 2008. "Discrimination, Income Determination and Inequality – The case of Shenzhen," Working Papers CIE 16, Paderborn University, CIE Center for International Economics.
    6. Shuchen, Liu & Deng, Kent & Shengmin, Sun, 2018. "Forced ruralisation of urban youth during Mao’s rule and women’s status in post-Mao China: an empirical study," Economic History Working Papers 90615, London School of Economics and Political Science, Department of Economic History.
    7. Gustafsson, Björn & LI, Shi & Sato, Hiroshi, 2014. "Data for studying earnings, the distribution of household income and poverty in China," China Economic Review, Elsevier, vol. 30(C), pages 419-431.
    8. Takashi Oshio & Kayo Nozaki & Miki Kobayashi, 2013. "Division of Household Labor and Marital Satisfaction in China, Japan, and Korea," Journal of Family and Economic Issues, Springer, vol. 34(2), pages 211-223, June.
    9. Xie, Julan & Zhou, Dinggen & Tan, Yuxuan, 2021. "Relationship between mindfulness and general health among couples in Mainland China: A crossover perspective," Social Science & Medicine, Elsevier, vol. 281(C).
    10. Bjorn Gustafsson & Sai Ding, 2011. "Unemployment and the Rising Number of Non-Workers in Urban China: Causes and Distributional Consequences," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 201117, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).

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