Analysis of Domestic Labor Supply Under the “Universal Two-child” Policy

With the changes in the population structure, China's population policy has been continuously adjusted since the 1980s. In early 2016, China began to implement the universal two-child policy, hoping to cope with the aging population, the declining birthrate, and the decline in labor supply. However, it was not satisfactory. Based on demographic data, this paper analyzes the background of the universal two-child policy, as well as the current changes in the labor supply situation and existing problems in China, and put forward suggestions to further improve the birth policy, increase the willingness of women of childbearing age to give birth, improve the quality of employment, and strengthen human capital investment.