Abstract

We examine whether parents who have preference for sons and may practice gender selections, are adequately incorporating the implications of their aggregate preference and behavior. Using a nationally representative random sample of Chinese households, we show that facing high sex ratios (more men than women), parents with a son, relative to parents with a daughter, report lower evaluative, emotional, and eudaimonic well-being. We examine the role of reduced consumption, intensified status comparison, and increased income aspiration—which are motivated by a desire to help their son improve marriage prospects—as underlying mechanisms. The findings provide new perspectives on the welfare cost of sex imbalance.

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