Does the One-Child Policy Improve Chinese Human Capital? A Propensity Score Matching Analysis

Abstract

This research examined the impact of the One-Child Policy (OCP) on Chinese human capital per capita. To the best of this author’s knowledge, this research is the first to explore the effect of the OCP on Chinese human capital by using propensity score matching (PSM). This research also examined the relationship between the gender difference in human capital per capita with the implementation of the OCP. It was found that the OCP has a positive effect not only on improving Chinese human capital, but also on decreasing gender difference in human capital. These results confirm the existence of the Becker quality–quantity trade-off. Furthermore, the marginal effect of the OCP on pre-tax and post-tax income was also calculated using the PSM method. The results show that the OCP improved the average income of females and thus decreased the gender income difference, although it also has a low effect on the GDP per capita of males and the overall sample.