Date of Award

2016

Document Type

Honors Thesis (Open Access)

Department

Colby College. Economics Dept.

Advisor(s)

David Findlay

Second Advisor

Dan LaFave

Third Advisor

Samara Gunter

Abstract

The Chinese One-Child Policy, enacted in 1979, was an attempt to decrease the population growth rate following a period of massive social and political confusion and uncertainty. While the policy was beneficial to curbing the population growth in China, it also introduced unintentional consequences, including sex imbalance, and other demographic differences. The goal of this paper is to examine the economic behavior and financial decisions of son-families and daughter-families across different provinces and regions of China, which have varying levels of sex imbalance, as a result of a cultural preference for sons. These financial decisions include the household saving rate, household savings in the form of bank deposits, and the decision of home ownership. This paper will examine why households in different areas of the country have different behavior in household saving rates, household bank deposits, and determination of home ownership. These financial decisions are likely to be driven by, among other factors, income, the gender of child, and the age of child.

Keywords

china, one-child policy, financial decisions

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