The One-Child Policy and Household Saving

Taha Choukhmane, Nicolas Coeurdacier and Keyu Jin
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Taha Choukhmane: MIT Sloan - Sloan School of Management - MIT - Massachusetts Institute of Technology, NBER - National Bureau of Economic Research [New York] - NBER - The National Bureau of Economic Research
Keyu Jin: LSE - London School of Economics and Political Science

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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: Life Cycle saving; Fertility; Human Capital; Intergenerational Transfers (search for similar items in EconPapers)
Date: 2023-01-09
New Economics Papers: this item is included in nep-dge
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03915301
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Citations: View citations in EconPapers (4)

Published in Journal of the European Economic Association, 2023, ⟨10.1093/jeea/jvad001⟩

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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:hal:journl:hal-03915301

DOI: 10.1093/jeea/jvad001

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