Husbands' wages and married women's labor supply in urban China

Abstract

In this study, we examine the impact of husbands' wages on married women's labor force participation (extensive margin) and hours worked (intensive margin) in urban China from 1995 to 2018. We emphasize that changes in a husband's wages alter each spouse's relative contribution to the household, thus highlighting the important role of gender identity norms in the association between husbands' wages and married women's labor supply. We find that a 1% increase in husbands' wages is associated with a 0.018 percentage point decrease in married women's labor force participation and a decrease of 1.45 h worked annually. When gender identity norms are controlled, these numbers increase to 0.024 and 1.94, respectively. Additionally, we observe significant heterogeneous effects for wives of different ages and education levels and with varying numbers of children. The negative association between husbands' wages and women's hours worked has become stronger over time.