Unequal Duties and Unequal Retirement: Decomposing the Women's Labor Force Decline in Postreform China

Abstract

Abstract The gender gap in labor force participation (LFP) in China has grown over the last 30 years, despite substantial advances in women's education and economic development. Previous research has identified gender discrimination and work–family conflicts as two key explanations for the gap, both of which have risen since the start of China's economic reform in 1978. Using multiple waves of the national census and household panel data from China, this research shows that one overlooked mechanism widening the LFP gender gap lies in the institutional constraints that require women to retire earlier than men. This research also demonstrates how the impact of women's early retirement on the LFP gender gap has been exacerbated by two societal-level changes: (1) population aging, which increased the share of women who reached the retirement age; and (2) economic development, which increased the number of women entering nonfarming occupations and, hence, the gender-based retirement system. These findings suggest that without significant revisions to China's retirement system, the LFP gender gap will continue to expand as the population ages and economic development proceeds.