Topic: Missing Women: A Quantitative Analysis

Lecturer: Research Assistant Yongkun Yin, Department of Economics, School of Economics, Shandong University

Time: 12:15-13:15p.m. September 21st, 2023

Venue: B321 Zhixin Building, Central Campus

Abstract: The sex ratio, males per female, is well above one in China, India, and other South and East Asian countries. Parents in these countries want more boys, exercise sex-selective abortions, and invest less in their daughters' education. Why do parents favor sons over daughters? What policies can be effective in normalizing the sex ratio? To answer these questions, I build an overlapping-generation model of fertility, sex selection, the quantity quality trade-off, and marriage and estimate it for India. The quantitative analysis reveals that the main drivers of missing women are economic factors, i.e., old-age support by sons, dowry payment for daughters, and labor market discrimination against women. If the gender differences in these economic factors are removed, the sex ratio at birth (SRB) would reduce from.1.14 to 1.05. The fertility rate would drop from 3.1 to 2.4, and the share of women with. secondary education would increase from 49%to 72%. The sons would also benefit from lower fertility, and the share of men with secondary education Would rise from 65% to 79%. Once the economic factors become gender -neutral, eliminating intrinsic son preferences has a small additional effect. A subsidy for female births or female education, commonly-implemented policies in India and elsewhere, can both reduce the SRB. However, the former increases fertility and reduces children's education and women's labor supply, while the latter has the opposite effects. Finally, a pay-as -you-go pension system can lower the SRB to 1.09, but it also reduces children's educational attainment, as parents value them now less.