One Child Policy Case Study

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Two child policy is the evolution of one child policy. The history of it is as follow:

One Child Policy was a population planning system in China. It can be divined into three stage that the content is difference in difference stage. The first stage in 1979 also the beginning of One Child Policy, it limited family could only have one child. Any family who had a child would be awarded a ‘Certificate of Honor for Single-Child Parents’. In addition, if family who had more than one child, they would be fined thousands of dollars except from the families that both of the parents are only child. The second stage in 2013, the restriction of one child policy had been relaxed. Family was allowed to have two child if one parents, rather than both parents,
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In other words, most of them have no siblings. They are the sole inherits of their parents’ wealth or parents’ assets. When the parents die, their offspring get at least two house in general. In addition, if their parents are investor, they may get more than two house. Therefore, the supply of house is high in China. However, it is very ridiculous that the home price is extremely high in China although there are high supply. Worse still, there are low demand on house in China. One of the reason is one-child policy reduce the population in China. It eventually let very few younger absorb the over-spill of house. That’s why people think One Child Policy collapse the housing market. It must not a good environment, also disadvantage to the economy in…show more content…
Due to the one child policy, the fertility was deceased after implementation of it. As a result, the labour force was beginning to be decreased after peaking at 940 million in 2012. After abolished the one child policy and implement two child policy, it will help to slow down the decrease of labour force.

There is no doubt that aging population is a obstacle of economic growth. It is because it will let fewer people enter the the labor force. Here is some reference which prove that the new policy can relax this problem and improve the population structure. According to Associated press reported by Varandani (2015), they expected 3 million extra baby born each year in the initial years. As a result, there will be more than 30 million people enter to the labor force by 2050. According to the article from Juan (2016), he reported that without the policy, the number of people age 60 and older would be 25.7% of the population in 2030, the new policy is expected to reduce 2% of that number. It reflects the new policy can relax the aging population caused by one child policy. In other words, the two child policy can benefit to the economy in

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