The effects of Chinese population policy on the labor market

Filipović, Sanja and Ignjatović, Jelena (2023) The effects of Chinese population policy on the labor market. Stanovništvo, 60 (1). pp. 69-89. ISSN 0038-982X

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Abstract

Faced with high levels of poverty, China introduced its "one-child policy" in 1980 and began economic and systemic reforms that led to the country's strong economic development. Thanks to the improvement in the average standard of living, certain socioeconomic aspects related to women's employment, the pursuit of higher education, delays in childbirth, and the number of children have changed. These changes have not only reduced the number of children being born and led to population aging, but have also affected the labour market. The aim of this paper is to determine the effects of Chinese population policy on selected labour market indicators: labour force by age and sex in rural/urban areas, the labour force participation rate, and the unemployment rate. Research results from 2010 to 2020 show the growth of the labour force, while the unemployment rate has been growing since 2018. It is noticeable that the number of workers in the labour force is growing in cities, while it is declining in rural areas. On the other hand, the unemployment rate is lower in rural areas, while the growth of unemployment is evident in urban areas. The research shows that the long-term implementation of this population policy has resulted in a larger number of men, leading to greater participation of men in the labour force. Despite measures to improve the position of women at work, women's social security is still not guaranteed, and it is more difficult for women to decide to expand their families. As China has ambitious plans for economic development, defining adequate population and social policies is crucial for their implementation.

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