The Intergenerational Effect of Parental Health Shocks on Adult Children Fertility Decisions in China

This paper investigates the relationship between parental health shocks and fertility decisions in China, utilizing a longitudinal dataset of Chinese households. We find that parental health shocks significantly delay the reproductive age and decrease the desire for additional children among adult children in the family. Furthermore, our analysis shows that personal income insurance and social security mechanisms can play a crucial role in mitigating these effects. We employ a dual approach utilizing coarsened exact matching (CEM) and propensity score matching (PSM) methods to address potential sample selection bias. Our research provides insights into the dynamic impact of parental health shocks on fertility decisions. These findings underscore the importance of effective health insurance and social security policies to support families during medical crises and promote sustainable population growth in China