The one-child policy and household saving

Taha Choukhmane, Nicolas Coeurdacier and Keyu Jin

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: We investigate whether the "one-child policy" has contributed to the rise in China's household saving rate and human capital in recent decades. In a life-cycle model with intergenerational transfers and human capital accumulation, fertility restrictions lower expected old-age support coming from children - inducing parents to raise saving and education investment in their offspring. Quantitatively, the policy can account for at least 30% of the rise in aggregate saving. Using the birth of twins under the policy as an empirical out-of-sample check to the theory, we find that quantitative estimates on saving and education decisions line up well with micro-data.

Keywords: AAM; requested (search for similar items in EconPapers)
JEL-codes: D10 D91 E21 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2023-06-01
New Economics Papers: this item is included in nep-cna, nep-dem and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Journal of the European Economic Association, 1, June, 2023, 21(3), pp. 987 - 1032. ISSN: 1542-4766

Downloads: (external link)
http://eprints.lse.ac.uk/119964/ Open access version. (application/pdf)

Related works:
Journal Article: The One-Child Policy and Household Saving (2023)
Working Paper: The One-Child Policy and Household Saving (2023)
Working Paper: The One-Child Policy and Household Saving (2023)
Working Paper: The One-Child Policy and Household Savings (2014)
Working Paper: The One-Child Policy and Household Savings (2014)
Working Paper: The One-Child Policy and Household Savings (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:119964

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