Sex Ratios, Entrepreneurship, and Economic Growth in the People's Republic of China

Shang-Jin Wei and Xiaobo Zhang

No 16800, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: China experiences an increasingly severe relative surplus of men in the pre-marital age cohort. The existing literature on its consequences focuses mostly on negative aspects such as crime. In this paper, we provide evidence that the imbalance may also stimulate economic growth by inducing more entrepreneurship and hard work. First, new domestic private firms - an important engine of growth - are more likely to emerge from regions with a higher sex ratio imbalance. Second, the likelihood for parents with a son to be entrepreneurs rises with the local sex ratio. Third, households with a son in regions with a more skewed sex ratio demonstrate a greater willingness to accept relatively dangerous or unpleasant jobs and supply more work days. In contrast, the labor supply pattern by households with a daughter is unrelated to the sex ratio. Finally, regional GDP tends to grow faster in provinces with a higher sex ratio. Since the sex ratio imbalance will become worse in the near future, this growth effect is likely to persist.

JEL-codes: E2 F3 F43 J1 J2 O1 O4 (search for similar items in EconPapers)
Date: 2011-02
New Economics Papers: this item is included in nep-cna, nep-dev, nep-ent and nep-tra
Note: EFG IFM LS
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Citations: View citations in EconPapers (44)

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