The One-Child Policy and Household Saving

The implementation of the “one-child policy” in China has had a significant impact on the country’s household saving rate and human capital in recent decades.
Moreover, the restrictions on fertility imposed by the policy have motivated parents to increase savings and invest more in their children’s education. It is estimated that the policy itself has contributed to at least 30% of the overall increase in aggregate saving.

Image courtesy of interviewee. November 11, 2023

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