Do residential patterns affect women's labor market performance? An empirical study based on CHFS data.

Area of Science:

• Sociology
• Economics
• Demography

Background:

• Female labor market participation is crucial for economic growth.
• Traditional family structures and caregiving responsibilities often impact women's careers.
• Understanding residential patterns' influence on women's employment is vital.

Purpose of the Study:

• To investigate the impact of coresidence with parents on female labor market performance.
• To analyze the mechanisms driving this impact, including childcare and eldercare.
• To examine heterogeneity in this effect across different family demographics.

Main Methods:

• Utilized China Household Finance Survey (CHFS) 2019 data.
• Employed Heckman two-step and conditional mixed process estimation (CMP) methods to address endogeneity.
• Conducted mechanism and heterogeneity analyses.

Main Results:

• Coresidence with parents significantly increases women's labor market participation and employment income.
• Grandchild care (spillover effect) is a stronger positive influence than elderly care (crowding-out effect).
• The impact is more pronounced for women with young children (0-6 years), those without sons, and those with employed husbands.

Conclusions:

• Coresidence with parents positively influences women's labor market outcomes in China.
• Policy interventions can leverage extended family support to enhance female employment.
• Findings offer insights for promoting gender equality in the workforce.