A Second Child? No, Thank You! The Impact of Chinese Family Planning Policies on Fertility Decisions

In 1979, the Chinese government introduced the One-child Policy for the purpose of controlling population growth. Thirty years later, the fertility rate in China has declined to a very low level and one-child families have become the norm. At the same time, the consequences of low fertility rates have emerged. In 2015, the government announced a new policy that encouraged couples to have two children in order to raise the total fertility rate. In this paper, I analyze the economic and legal implications of the Chinese family planning policies. By examining to what extent fertility decisions are affected by government policies, I evaluate the potential effects of the Two-child Policy. The findings suggest that the Two-child Policy might not be effective in increasing the total fertility rate.