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Social security and female labor supply in China

Han Gao

Journal of Economic Behavior & Organization, 2025, vol. 238, issue C

Abstract: I develop a dynamic model of female labor supply, featuring human capital accumulation and intergenerational time transfer in the form of grandparental child care, to study how raising urban Chinese women’s social security eligibility age would affect their employment, human capital, and earnings. I find the policy reform encourages labor supply of older women but discourages labor supply of low-skilled young women with children as a result of children’s grandmothers working more and providing less child care. Furthermore, the effectiveness of policy in stimulating the labor supply and earnings of women depends on the degree of labor market frictions facing old age women after the policy change.

Keywords: China; Social security; Female labor supply; Child care; Human capital; Life cycle (search for similar items in EconPapers)
JEL-codes: D15 H55 J13 J22 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:238:y:2025:i:c:s0167268125003221

DOI: 10.1016/j.jebo.2025.107203

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