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.
Similar content being viewed by others
Data Availability
All data generated or analyzed in this study were obtained from eight waves (1993, 1997, 2000, 2004, 2006, 2009, 2011 and 2015) of China Health and Nutrition Survey (CHNS), which are available online.
Notes
The total fertility rate is the number of children a woman can expect during her lifetime; 2.1 is the replacement level, the point at which the population stabilizes.
Note that despite this variation, this sample was not representative at the national level, although some evidence showed that characteristics of households and individuals in the data were comparable to those from national samples (Chen et al., 2015).
We dropped observations with urban hukou restricted by the One-Child Policy, which accounted for approximately 80% of women with urban hukou.
After the sample restrictions, there were 6624 observations, of which missing data accounted for nearly 4%.
There were no never-married women in our sample.
Rural‒urban migrants are defined as individuals who had rural hukou but were living in an urban area at the time of the survey. Similarly, urban‒rural migrants are defined as individuals who had urban hukou but were living in a rural area at the time of the survey.
Income is measured in 2015 Chinese Yuan.
References
Aaronson, D., Dehejia, R., Jordan, A., Pop-Eleches, C., Samii, C., & Schulze, K. (2017). The effect of fertility on mothers’ labor supply over the last two centuries. The Economic Journal. https://doi.org/10.3386/w23717
Agüero, J. M., & Marks, M. S. (2008). Motherhood and female labor force participation: Evidence from infertility shocks. American Economic Review, 98(2), 500–504. https://doi.org/10.1257/aer.98.2.500
Agüero, J. M., & Marks, M. S. (2011). Motherhood and Female Labor Supply in the developing world: Evidence from infertility shocks. Journal of Human Resources, 46(4), 800–826. https://doi.org/10.1353/jhr.2011.0002
Altonji, J. G., Elder, T. E., & Taber, C. R. (2005). An evaluation of instrumental variable strategies for estimating the effects of Catholic schooling. Journal of Human Resources, 40(4), 791–821. https://doi.org/10.3368/jhr.xl.4.791
Amuedo-Dorantes, C. (2004). Determinants and poverty implications of informal sector work in Chile. Economic Development and Cultural Change, 52(2), 347–368. https://doi.org/10.1086/380926
Anderson, S., & Eswaran, M. (2009). What determines female autonomy? evidence from Bangladesh. Journal of Development Economics, 90(2), 179–191. https://doi.org/10.1016/j.jdeveco.2008.10.004
Angrist, J. D., & Evans, W. N. (1998). Children and their parents’ labor supply: Evidence from exogenous variation in family size. American Economic Review, 88(3), 450–477.
Banerjee, A., Meng, X., & Qian, N. (2010). The life cycle model and household savings: Micro evidence from Urban China. Retrieved December 14, 2022, from https://conference.nber.org/confer/2010/CWGf10/banerjee.pdf
Becker, G. (1965). A theory of the allocation of time. The Economic Journal, 75(299), 493–517. https://doi.org/10.2307/2228949
Boden, R. J. (1999). Flexible working hours, family responsibilities, and female self-employment. American Journal of Economics and Sociology, 58(1), 71–83. https://doi.org/10.1111/j.1536-7150.1999.tb03285.x
Bosch Mossi, M., & Maloney, W. F. (2007). Gross worker flows in the presence of informal labor markets: Evidence from Mexico, 1987–2002. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.998484
Browning, M. (1992). Children and household economic behavior. Journal of Economic Literature, 30, 1434–1475.
Bruce, D., & Schuetze, H. J. (2004). The labor market consequences of experience in self-employment. Labour Economics, 11(5), 575–598. https://doi.org/10.1016/j.labeco.2003.10.002
Bryan, M. L., & Sevilla, A. (2017). Flexible working in the UK and its impact on couples’ time coordination. Review of Economics of the Household, 15(4), 1415–1437. https://doi.org/10.1007/s11150-017-9389-6
Budig, M. J., & England, P. (2001). The wage penalty for motherhood. American Sociological Review, 66(2), 204–225. https://doi.org/10.2307/2657415
Bulte, E., Heerink, N., & Zhang, X. (2011). China’s one-child policy and ‘The mystery of missing women’: Ethnic minorities and male-biased sex ratios. Oxford Bulletin of Economics and Statistics, 73(1), 21–39. https://doi.org/10.1111/j.1468-0084.2010.00601.x
Caballero, G. A. (2017). Responsibility or autonomy: Children and the probability of self-employment in the USA. Small Business Economics, 49(2), 493–512. https://doi.org/10.1007/s11187-017-9840-3
Cáceres-Delpiano, J. (2012). Can we still learn something from the relationship between fertility and mother’s employment? Evidence from developing countries. Demography, 49(1), 151–174. https://doi.org/10.1007/s13524-011-0076-6
Carrasco, R. (2001). Binary choice with binary endogenous regressors in panel data. Journal of Business & Economic Statistics, 19(4), 385–394. https://doi.org/10.1198/07350010152596637
Chang, H., MacPhail, F., & Dong, X. (2011). The feminization of labor and the time-use gender gap in rural China. Feminist Economics, 17(4), 93–124. https://doi.org/10.1080/13545701.2011.604621
Chen, F., Liu, H., Vikram, K., & Guo, Y. (2015). For better or worse: The health implications of marriage separation due to migration in rural China. Demography, 52(4), 1321–1343. https://doi.org/10.1007/s13524-015-0399-9
Chen, Y., & Huang, Y. (2020). The power of the government: China’s Family Planning Leading Group and the fertility decline of the 1970s. Demographic Research, 42, 985–1038. https://doi.org/10.4054/demres.2020.42.35
Chen, Y., Li, H., & Meng, L. (2013). Prenatal sex selection and missing girls in China: Evidence from the diffusion of diagnostic ultrasound. Journal of Human Resources, 48(1), 36–70. https://doi.org/10.1353/jhr.2013.0003
Connelly, R. (1992). Self-employment and providing child care. Demography, 29(1), 17–29. https://doi.org/10.2307/2061360
Constant, A. (2006). Female proclivity to the world of business. Kyklos, 59(4), 465–480. https://doi.org/10.1111/j.1467-6435.2006.00345.x
Cruces, G., & Galiani, S. (2007). Fertility and female labor supply in Latin America: New causal evidence. Labour Economics, 14(3), 565–573. https://doi.org/10.1016/j.labeco.2005.10.006
Daouli, J., Demoussis, M., & Giannakopoulos, N. (2009). Sibling-sex composition and its effects on fertility and labor supply of Greek mothers. Economics Letters, 102(3), 189–191. https://doi.org/10.1016/j.econlet.2009.01.002
Dawson, C. J., Henley, A., & Latreille, P. L. (2009). Why do individuals choose self-employment? SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1336091
Dessy, S. E., & Bago, J.-L. (2021). Motherhood and women’s self-employment: Theory and evidence from Nigeria. Economic Development and Cultural Change. https://doi.org/10.1086/716322
Dinh, H., & Racionero, M. (2017). Parents’ primary and secondary child care time adjustment to Market Time: Evidence from Australian mothers and fathers. Tax, Social Policy and Gender: Rethinking Equality and Efficiency. https://doi.org/10.22459/tspg.11.2017.07
Ebenstein, A. (2010). The “missing girls” of China and the unintended consequences of the one child policy. Journal of Human Resources, 45(1), 87–115. https://doi.org/10.1353/jhr.2010.0003
Edwards, L. N., & Field-Hendrey, E. (2002). Home-based work and women’s labor force decisions. Journal of Labor Economics, 20(1), 170–200. https://doi.org/10.1086/323936
Fan, Y., Yi, J., Yuan, Y., & Zhang, J. (2018). The glorified mothers of sons: Evidence from child sex composition and parental time allocation in rural China. Journal of Economic Behavior & Organization, 145, 249–260. https://doi.org/10.1016/j.jebo.2017.11.012
Gallaway, J. H., & Bernasek, A. (2002). Gender and informal sector employment in Indonesia. Journal of Economic Issues, 36(2), 313–321. https://doi.org/10.1080/00213624.2002.11506473
Glauber, R. (2007). Marriage and the motherhood wage penalty among African Americans, Hispanics, and whites. Journal of Marriage and Family, 69(4), 951–961. https://doi.org/10.1111/j.1741-3737.2007.00423.x
Grogger, J., & Bronars, S. (1997). The effect of welfare payments on the marriage and fertility behavior of unwed mothers: Results from a twins experiment. Journal of Political Economy. https://doi.org/10.3386/w6047
Gu, B., Wang, F., Guo, Z., & Zhang, E. (2007). China’s local and national fertility policies at the end of the Twentieth Century. Population and Development Review, 33(1), 129–148. https://doi.org/10.1111/j.1728-4457.2007.00161.x
Gurley-Calvez, T., Biehl, A., & Harper, K. (2009). Time-use patterns and women entrepreneurs. American Economic Review, 99(2), 139–144. https://doi.org/10.1257/aer.99.2.139
Heckman, J. J. (1979). Sample selection bias as a specification error. Econometrica, 47(1), 153–161. https://doi.org/10.2307/1912352
Hesketh, T., Lu, L., & Xing, Z. W. (2005). The effect of China’s one child family policy after 25 years. New England Journal of Medicine, 353(11), 1171–1176. https://doi.org/10.1056/NEJMhpr051833
Hundley, G. (2000). Male/female earnings differences in self-employment: The effects of marriage, children, and the Household Division of Labor. Industrial and Labor Relations Review, 54(1), 95–114. https://doi.org/10.2307/2696034
Hussmanns, R. (2005). Measuring the informal economy: From employment in the informal sector to informal employment (Working Paper No. 53). International Labour Organization. Retrieved December 14, 2022, from https://www.ilo.org/integration/resources/papers/WCMS_079142/lang--en/index.htm
International Labor Organization. (2013). Measuring informality: A statistical manual on the informal sector and informal employment. International Labour Organization. Retrieved December 14, 2022, from https://www.ilo.org/global/publications/ilo-bookstore/order-online/books/WCMS_222979/lang--en/index.htm
International Labour Organization. (2018). Women and men in the informal economy: A statistical picture. third edition. International Labour Organization. Retrieved December 14, 2022, from https://www.ilo.org/global/publications/books/WCMS_626831/lang--en/index.htm
Joona, P. A. (2017). Are mothers of young children more likely to be self-employed? the case of Sweden. Review of Economics of the Household, 15(1), 307–333. https://doi.org/10.1007/s11150-016-9349-6
Kyriazidou, E. (1997). Estimation of a panel data sample selection model. Econometrica, 65(6), 1335–1364. https://doi.org/10.2307/2171739
Li, L., & Wu, X. (2011). Gender of children, bargaining power, and intrahousehold resource allocation in China. Journal of Human Resources, 46(2), 295–316. https://doi.org/10.1353/jhr.2011.0014
Lim, K. (2019). Do American mothers use self-employment as a flexible work alternative? Review of Economics of the Household, 17(3), 805–842. https://doi.org/10.1007/s11150-018-9426-0
Liu, Z. (2005). Institution and inequality: The Hukou System in China. Journal of Comparative Economics, 33(1), 133–157. https://doi.org/10.1016/j.jce.2004.11.001
Liu, L., Dong, X. Y., Chen, G., & Zheng, X. Y. (2010). Effect of parental care on labor time allocation among rural married women in China. World Economic Papers, 1(5), 1–15. in Chinese.
Loayza, N. V., & Rigolini, J. (2006). Informality trends and cycles. Policy Research Working Papers. https://doi.org/10.1596/1813-9450-4078
Lombard, K. V. (2001). Female self-employment and demand for flexible, nonstandard work schedules. Economic Inquiry, 39(2), 214–237. https://doi.org/10.1111/j.1465-7295.2001.tb00062.x
Macpherson, D. A. (1988). Self-employment and married women. Economics Letters, 28(3), 281–284. https://doi.org/10.1016/0165-1765(88)90132-2
Maurer-Fazio, M., Connelly, R., Chen, L., & Tang, L. (2011). Childcare, eldercare, and labor force participation of married women in urban China, 1982–2000. Journal of Human Resources, 46(2), 261–294. https://doi.org/10.1353/jhr.2011.0011
Meng, C. L., & Schmidt, P. (1985). On the cost of partial observability in the Bivariate Probit Model. International Economic Review, 26(1), 71–85. https://doi.org/10.2307/2526528
Michalopoulos, C., & Robins, P. K. (2002). Employment and child-care choices of single-parent families in Canada and the United States. Journal of Population Economics, 15(3), 465–493. https://doi.org/10.1007/s001480100099
Moffitt, R. (1984). Profiles of fertility, labour supply and wages of married women: A complete life-cycle model. The Review of Economic Studies, 51(2), 263–278. https://doi.org/10.2307/2297691
Noseleit, F. (2014). Female self-employment and children. Small Business Economics, 43(3), 549–569. https://doi.org/10.1007/s11187-014-9570-8
Schwiebert, J. (2015). Estimation and interpretation of a Heckman selection model with endogenous covariates. Empirical Economics, 49(2), 675–703. https://doi.org/10.1007/s00181-014-0881-z
Semykina, A. (2018). Self-employment among women: Do children matter more than we previously thought? Journal of Applied Econometrics, 33(3), 416–434. https://doi.org/10.1002/jae.2596
Semykina, A., & Wooldridge, J. M. (2017). Binary response panel data models with sample selection and self-selection. Journal of Applied Econometrics, 33(2), 179–197. https://doi.org/10.1002/jae.2592
Silles, M. A. (2016). The impact of children on Women’s Labour Supply and earnings in the UK: Evidence using twin births. Oxford Economic Papers, 68(1), 197–216. https://doi.org/10.1093/oep/gpv055
Song, Y. (2014). What should economists know about the current Chinese hukou system? China Economic Review, 29, 200–212. https://doi.org/10.1016/j.chieco.2014.04.012
Thornton, A., & Lin, H. S. (1995). Social Change and the family in Taiwan. University of Chicago Press.
Waldfogel, J. (1998). Understanding the ‘family gap’ in pay for women with children. Journal of Economic Perspectives, 12(1), 137–156. https://doi.org/10.1257/jep.12.1.137
Wang, F., Zhao, L., & Zhao, Z. (2017). China’s family planning policies and their labor market consequences. Journal of Population Economics, 30(1), 31–68. https://doi.org/10.1007/s00148-016-0613-0
Wei, S., & Zhang, X. (2011). The competitive saving motive: Evidence from rising sex ratios and savings rates in China. Journal of Political Economy, 119(3), 511–564. https://doi.org/10.1086/660887
Wellington, A. J. (2006). Self-employment: The new solution for balancing family and career? Labour Economics, 13(3), 357–386. https://doi.org/10.1016/j.labeco.2004.10.005
Whyte, M. K. (2003). China’s revolutions and intergenerational relations. Center for Chinese Studies, University of Michigan. https://doi.org/10.3998/mpub.19840
Williams, D. R. (2000). Consequences of self-employment for women and men in the United States. Labour Economics, 7(5), 665–687. https://doi.org/10.1016/s0927-5371(00)00017-8
Wooldridge, J. M. (1995). Selection corrections for panel data models under conditional mean independence assumptions. Journal of Econometrics, 68(1), 115–132. https://doi.org/10.1016/0304-4076(94)01645-g
Wooldridge, J. M. (2010). Econometric analysis of cross section and panel data (2nd edn.). MIT Press.
World Bank. (2020). Fertility rate, total (births per woman)—China. World Bank, Country data. Retrieved from https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?locations=CN
Xu, X., Ji, J., & Tung, Y.-Y. (2000). Social and political assortative mating in urban China. Journal of Family Issues, 21(1), 47–77. https://doi.org/10.1177/019251300021001003
Yuan, H. (2010). Migrant family’s choices of mother’s employment and childcare: empirical evidence from Beijing. In X. Y. Dong & S. Cook (Eds.), Gender equality and china’s economic transformation: Informal Employment and Care Provision (pp. 192–205). Economic Science Press.
Zhang, Y., & Hannum, E. (2013). Marriage, parenthood, and Labor Outcomes for women and men. Chinese Social Policy in a Time of Transition. https://doi.org/10.1093/acprof:oso/9780199990313.003.0012
Acknowledgements
The author would like to thank the editor, Professor Joyce Serido, and the anonymous reviewers for their valuable suggestions and constructive comments that greatly contributed to improving the quality of this paper. The authors are responsible for any remaining errors or omissions.
Funding
This research was supported by the National Social Science Fund of China (Grant No. 19BSH074).
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors certify that there is no conflict of interest with any individual/organization for the present work.
Ethical Approval
This paper does not contain any studies with human participants performed by the author.
Informed Consent
Informed consent was obtained from all individual participants included in the study.
Consent for publication
All authors have approved the manuscript and agreed with its submission to the journal.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Wu, Y., Tong, L. & Yi, Y. Does Having More Children Affect Women’s Informal Employment Choices? Evidence from China. J Fam Econ Iss (2023). https://doi.org/10.1007/s10834-023-09915-x
Accepted:
Published:
DOI: https://doi.org/10.1007/s10834-023-09915-x