Work

Does child care weaken household financial resilience? Evidence from China under the life cycle perspective

Year: 2025

Type: article

Abstract: Objective This study explored the correlation between child care and household financial resilience, considering differences across the family life cycle. Background Existing research has examined the effects of child care on household consumption and financial decision‐making. Yet, little is known about how child care influences household financial resilience across various stages of the family life cycle. Method A fixed effect model was employed to analyze data from the 2013–2019 China Household Finance Survey ( n = 4,081), a comprehensive data set covering households’ demographic characteristics and financial conditions. Additionally, a finite mixture model for endogenous clustering was used. Results Overall and across most stages of the family life cycle, child care was found to weaken household financial resilience. However, no association was detected when all children reached a certain age. Education, financial literacy, and social capital can alleviate the negative impact of child care for particular households in the growth stage. Conclusion Findings indicate that child care weakens household financial resilience, though this effect is not persistent across the entire family life cycle and can be mitigated. Implications Public policy that encourages intergenerational support and strengthens household endogenous dynamics can be beneficial in alleviating childcare burdens.

Source: Family Relations

DOI: 10.1111/fare.70082

Authors: Yuanyuan Li, Yunqi Cao, Xiaojie Gu

Institution: Hebei University of Technology

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: No poverty, Good health and well-being

Open Access status: bronze

Funders: Natural Science Foundation of Hebei Province, National Office for Philosophy and Social Sciences