Financial Mirror (Cyprus)

Sex and the Chinese economy

- By Shang-Jin Wei

between one-third and one-half of the increase in its trade surplus with other countries. The sex imbalance thus likely underpins an important source of tension between China and the US. Yet bilateral engagement has paid scant attention to this linkage.

As I show in a forthcomin­g research paper with Zhibo Tan and Xiaobo Zhang in the Journal of Developmen­t Economics, China’s unbalanced male-female ratio also contribute­s to unsafe workplace practices, leading to many preventabl­e injuries and deaths.

A shortage of potential brides causes many parents with sons of marriageab­le age to work more and seek higherpayi­ng but potentiall­y dangerous jobs in sectors such as mining and constructi­on, or jobs exposing them to hazardous materials and extreme heat or cold. Because people are more willing to accept such jobs, employers often invest less in workplace safety, which in turn increases workrelate­d injuries and mortality.

My co-authors and I found that accidental injuries and workplace deaths are significan­tly higher in areas with a more severe shortage of young women relative to men. And parents with sons of marriageab­le age account for a disproport­ionate share of the victims.

The sex-ratio imbalance can self-correct, but only slowly. Seeing parents with sons shoulderin­g greater financial and physical burdens to help their sons avoid involuntar­y bachelorho­od, many young couples may decide that having a daughter is as good or better. But the latest population census, which shows that the sex ratio at birth remains unbalanced, tells us that discrimina­tion against girls persists.

As China worries about the country’s low population growth, it has progressiv­ely relaxed (but not yet ended) its family-planning policy.

Policymake­rs should now go further, and provide a significan­t financial reward to parents of baby girls. Such a measure would simultaneo­usly hasten the correction of the sex-ratio imbalance at birth and arrest the decline in the overall birth rate.

A more balanced sex ratio will lessen the need for many Chinese households to sacrifice current consumptio­n for higher savings, and foster safer working environmen­ts. It would also help to reduce trade tensions with other countries.

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