What does this research mean for the field?

China's universal two-child policy significantly reduced labor force participation and weekly working hours among grandparents. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To examine the impact of China's universal two-child policy reform on the labour supply and working hours of older adults.

August 23, 2026Applied Economics Letters

Do fertility policies affect grandparents’ labour supply? Evidence from China

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To examine the impact of China's universal two-child policy reform on the labour supply and working hours of older adults.
Analyzed four waves of nationally representative survey data from the China Health and Retirement Longitudinal Study (CHARLS) from 2011 to 2018.
Applied a difference-in-differences design exploiting household exposure defined by the pre-policy share of adult children aged 20–45 with at most one child.
Exposure to the policy significantly reduced grandparents' overall labour force participation and weekly working hours.
Labor supply reductions varied by gender and urban versus rural residence, whereas decreases in high-intensity work were not statistically robust.

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Implication

Longitudinal analysis reveals reduced labour participation and working hours among grandparents following fertility policy expansion, highlighting demographic spillovers on aging workers.

Cite This Study

Yahao Li (2026) studied this question.

synapsesocial.com/papers/6a8aada77677a34114445f09 https://doi.org/10.1080/13504851.2026.2722314

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Implication

Longitudinal analysis reveals reduced labour participation and working hours among grandparents following fertility policy expansion, highlighting demographic spillovers on aging workers.

Do fertility policies affect grandparents’ labour supply? Evidence from China

Key Points

Discussion

Implication

Cite This Study

Do fertility policies affect grandparents’ labour supply? Evidence from China

Key Points

Discussion

Implication

Cite This Study

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