The effect of family property income on labor supply: Evidence from China

This paper discusses the impact of family property income on labor supply. We use a Heckman two-stage model to solve the selection problem and CFPS data to conduct an empirical test. Depending on the estimation results of the Heckman two-stage model, family property income reduces the probability of employment and lowers the labor supply. Additionally, the negative effect on younger workers is greater than that of elder workers. As family property income is growing rapidly in China, how to inspiring young workers to join in the labor force will become a problem that society must face.