Maternal Self-Employment: Empowering Children’s Human Capital in Contemporary China

Parental employment has long been recognized as a crucial factor influencing children’s well-being, yet limited research has examined the impact of self-employment—an increasingly prevalent form of work globally—on offspring welfare. This study investigates the effects of maternal self-employment on children’s human capital accumulation using nationally representative longitudinal data from the China Family Panel Studies (2014, 2016, and 2018). Employing fixed-effects models, instrumental variable approaches, and nonlinear panel estimations, we find that maternal self-employment positively influences children’s mathematical performance and improves their health outcomes, as evidenced by reduced doctor visits. The beneficial impact is further moderated by maternal education levels and engagement in children’s education. Our findings contribute to the literature on parental employment and child well-being by offering novel insights into how self-employment shapes family dynamics and child development. This research provides important implications for policies supporting women’s employment and promoting child development in contemporary society.