Thursday 29 October 2015

Will couples be willing to have their second child?

China has abandoned the one child policy, which had lasted more than three decades. The policy targets human right issues and aging population and its relative economic issues. However, are couples willing to have their second child? Couples make their decision based on various reasons, including economics reasons. Having another child means the wife has to leave her job for about one year. In the labor market, many people argue that gender discrimination exists because employers believe female employees will leave their jobs during their pregnancy periods and spend more time on caring their children. The policy of allowing a second child may widen the gender discrimination. Moreover, couples have to choose between earning more incomes or having another child. Having another child will require parents to spend more on their family, more time with family means less time at work, then lower incomes. In addition, daily spending will increase; therefore, less money could be spent on luxury goods and services, leading to a lower living standard. In conclusion, we can see that couples, especially the middle classes, who have relatively comfortable lives but are still not wealthy enough to leave the labour market, have very high opportunity costs; therefore, they may not like to have a second child.

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