Family Size and Intergenerational Inequality: Evidence from China's One-child Policy.

This paper investigates the relationship between family size and intergenerational inequality in China. We construct a fuzzy non-parametric regression discontinuity design by the exogenous variation in fertility caused by the one-child policy. Our findings present that the one-child policy only results in a downward jump in urban fertility but does not significantly affect rural areas. The empirical results further suggest a negative correlation between family size and intergenerational inequality, but there is no evidence for the causal effect. The role of siblings in sharing risks, son preference, birth-order effect, more accessible student aids or loans and relaxed budget constraints are potential explanations for no causal effect. [ABSTRACT FROM AUTHOR]