The effect of family size on parents' labor supply and occupational prestige: Evidence from Taiwan and Mainland China

Abstract

This paper studies the effect of family size on parents' labor supply and occupational prestige, using the censuses of both Taiwan and Mainland China. We rely on the exogenous increase in child quantity that results from having twins at the first birth. Our results indicate that an increase in family size has negative effects on the labor supply of mothers but not of fathers, in both Taiwan and Mainland China. In addition, we find that in Taiwan fathers tend to switch to occupations with lower prestige scores in response to an increase in family size. However, the negative effect of family size on occupational prestige is not observed in Mainland China, where the occupational mobility is low.