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This study hypothesizes that the one-child policy could affect female labour supply through fertility behaviour. Employing a difference-in-difference strategy, this study examines the hypotheses from the perspective of the economic sector in urban China. Consistent with the hypotheses, it is found that relative to families whose first child is a son, the public-sector families (husband works in the public sector) whose first child is a daughter has fewer children, and the wife has more labour supply than the non-public-sector families. The findings provide new evidence for the literature on fertility restriction policy and maternal labour supply.

One-child policy, economic sector, and female labor supply: evidence from urban China