Economic Analysis of the Birth-Control Law in China

Abstract

This paper explores the two approaches of governments’ population policy: command-and-control regulation and market-oriented incentive. From both the micro and macro perspective, this paper draws a conclusion that the population market has its own autonomous principles and too much government intervention like the birth-control law in China is harmful. Policy-makers should provide guarantee from the political regime. And in case of market failure, the government should adopt the market-oriented approach to complement.