Peer-reviewed article

Study on the Impact of the "Comprehensive Two-Child" Policy on Women's Labor Force Participation Rate

Ting Zhang, Zeng Weijia, Jiawei Li · 24 Jul 2023

Abstract

China is at a critical juncture in its rapid population policy adjustment, which will have a profound impact on women's labor-force participation rate, which is related to women's economic independence, the social status of their families, and overall productivity. Against this background, we used CFPS tracking data from 2014 and 2016 to quantitatively analyze the impact of the "comprehensive two-child" policy on female labor-market participation and its heterogeneity, using a dual difference measurement. The study found that the introduction of the "comprehensive two-child" policy significantly reduced female labour participation by 7.29%. The results were still robust when the key variables were changed. Further research has shown that the impact is significantly heterogeneous, i.e. the implementation of the policy has a deeper and more pronounced impact on rural female labour force and female labour participation with one child. Therefore, more flexible employment support measures should be adopted at the government, social and enterprise levels. While ensuring the smooth implementation of child-bearing policies and promoting higher levels of child-bearing, education and training should also be strengthened to improve the earning capacity of couples of child-bearing age. Increase the supply of public pension services and safeguard the rights and interests of the living; Provide effective solutions to the problem that the implementation of policies significantly reduces female labour participation.