More Rights but Less Gains: Relaxed Birth Control Policy and the Loss for Women

In view of its aging population, China initiated in 2012 a relaxed birth control policy after a three‐decades‐long implementation of the restrictive one‐child policy. This paper examines how China's relaxed birth control policy leads to gender inequality. It specifically focuses on migrant workers because they account for a significant portion of the working group. Using the National Migrant Population Dynamic Monitoring Survey from 2014 to 2016, we found that China's two‐child pilot policy reduced female labor force participation by 1.4 percentage points. This negative effect was more pronounced for women with higher educational levels or working in the private sector because employers foresee greater risks of productivity decline. We demonstrated that the gender pay gap increased from RMB956 to RMB1,053 during this same period. Pinpointing these unintended consequences brought about by the relaxation of the one‐child policy helps provide a more complete picture of inequality and make sense of persistent relative poverty in Chinese society. To counteract gender discrimination, females are advised to work outside their home jurisdictions and take advantage of positive peer effects.