Does Birth Spacing Affect Female Labor Market Participation? Evidence from Urban China

Abstract

Abstract This paper investigates the impact of birth spacing on female labor market participation in urban China. Employing household panel surveys between 1989 and 2011 and exploiting variations in time intervals between the first and second child, we find that spacing births at longer intervals significantly increases female labor market participation. The effects of birth spacing are robust to various examinations that consider nonlinear specifications, selection on observed and unobserved variables, and the plausibly exogenous instrument. The heterogeneous analysis suggests that the effects of birth spacing are more pronounced in women with a daughter as the first birth, women with late first birth, and less-educated women. We examine potential mechanisms and document that women with longer birth intervals are likely to invest more in continuing education and have better health status.