Too busy with the “rat race” to have kids? Longitudinal evidence on the impact of peer grit on the fertility of reproductive-age women in China

Abstract

China is currently facing a notable decline in fertility rates. This research introduces a novel perspective on the factors influencing fertility among women of reproductive age, representing the first attempt to examine the impact of peer grit on female fertility. Analyzing nationally representative panel data from China and leveraging plausibly exogenous variations in peer exposure across cohorts, we find that peer grit is associated with a reduction in fertility behavior and intentions. The negative effects of peer grit are robust across alternative measures of core metrics and estimation techniques addressing endogeneity concerns. Additionally, our findings suggest that the influence of peer grit on women’s fertility behavior and intentions may be mediated by changes in educational attainment and employment stability, operating through a mechanism known as the demonstration effect.