China’s population falls; UK government blocks Scottish gender bill

China’s population falls; UK government blocks Scottish gender bill

Today’s global news summary brings news affecting China, the UK, and the globe and discusses issues as diverse as population decline, trans rights, and extreme wealth and poverty.  

China’s population fell for the first time in 60 years
Demography, family, and gender
A reduction in population numbers in China marks what is expected to be a long period of population decline, reports the Guardian. The National Bureau of Statistics reported a drop of 850,000 people from 2021 to 2022. In recent years the Chinese government has tried to encourage people to have more children, by easing the financial and social burdens of raising them. However, decades of the one-child policy and rising living costs mean that couples are resistant to having families. The head of the National Bureau of Statistics said that labor supply is still exceeding demand and urged people not to worry about the population decline. Commenters on the social media platform Weibo said that until the social pressures driving the low birth rate—house prices, welfare, education, health care—are addressed then people will continue to avoid having children.

“In 1979, the Chinese government formally initiated the [one child policy] to alleviate social, economic, and environmental problems such as the high unemployment rate and scarcity of land resources,” writes Wei Huang for IZA World of Labor. As well as having possibly increased human capital accumulation in China, the policy “also brought with it problems, such as an unbalanced sex ratio, increased crime, and individual dissatisfaction toward the government.”

Related content
IZA World of Labor articles 

How does the one child policy impact social and economic outcomes?
Migration and human capital accumulation in China
The Chinese labor market, 2000–2016
Can government policies reverse undesirable declines in fertility?

IZA Discussion Papers
Women's Education and Fertility in China
The One-Child Policy Amplifies Economic Inequality across Generations in China
Peer Effects and Fertility Preferences in China: Evidence from the China Labor-Force Dynamics Survey

UK government to block Scotland’s gender bill
Demography, family, and gender
The UK government is to block a Scottish bill—the Gender Recognition Bill—which aims to make it easier for people to change their legal gender. The government has never previously blocked a Scottish bill on the basis it may have a negative impact on UK law. The bill, which passed by 86 votes to 39 in the Scottish parliament in December 2022, would streamline the process in Scotland for changing legal gender, reports the BBC. The age at which someone can legally change their gender would fall to 16 from 18, applicants would no longer require a medical diagnosis of gender dysphoria, and they would only need to live as that gender for three months (six months if aged 16 or 17) before applying, rather than the current two years. Scottish ministers have said they intend to defend what the Scottish parliament has approved.  

“Trans issues have only recently become part of the ethical discourse and global patterns suggest that workplace behaviors are yet to adapt. However, an increasing section of society identifying as trans and gender non-conforming make swift adaptation imperative. An active trans population enjoying equal treatment in the labor market will be better able to help build the social and economic capital of their countries,” writes Nick Drydakis in his IZA World of Labor article.

Related content
IZA World of Labor articles 

Trans people, well-being, and labor market outcomes
Anonymous job applications and hiring discrimination
Do anti-discrimination policies work?

Key topics
Workplace discrimination

Videos
Discrimination and anti-discrimination policies: Harry Holzer in discussion with Daniel S Hamermesh

IZA Discussion Papers
The Economics of Being LGBT. A Review: 2015-2020
Workplace Positive Actions, Trans People's Self-Esteem and Human Resources' Evaluations
Trans People, Transitioning, Mental Health, Life and Job Satisfaction

The richest 1% have captured nearly two-thirds of all new wealth since 2020
Labor markets and institutions
In a report published on the opening day of the World Economic Forum in Davos, Switzerland, Oxfam detail how over the past two years global wealth has been captured by the super-rich. During the Covid-19 pandemic and the following cost of living crisis, the richest 1% captured 63% of all new wealth. A billionaire gained roughly $1.7 million dollars for every $1 of new global wealth earned by someone in the bottom 90%. At least 1.7 billion workers currently live in countries where inflation is outpacing wages, and roughly one in every ten people on Earth is going hungry. The World Bank says we are likely seeing the biggest increase in global inequality and poverty since World War II. Oxfam suggests that “A tax of up to 5% on the world’s multi-millionaires and billionaires could raise $1.7 trillion a year, enough to lift 2 billion people out of poverty, and fund a global plan to end hunger.”

IZA World of Labor Editor-in-chief Daniel S. Hamermesh discusses inflation and its impacts on the labor market with economists from France, Germany and the US in our latest panel video.

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IZA World of Labor articles 

The consequences of trade union power erosion
Gross domestic product: Are other measures needed?
Do firms’ wage-setting powers increase during recessions?

Key topics
What is economic inequality?

Opinions
Can inflation be accurately measured during a lockdown?
Covid-19’s impact on the economy: Measuring GDP during a pandemic

Videos
IZA World of Labor discussion on inflation and the labor market
IZA World of Labor Panel discussion on inequality, unemployment, wage setting and inflation

IZA Discussion Papers
Taxing Billionaires: Estate Taxes and the Geographical Location of the Ultra-Wealthy
Does Wealth Inequality Matter for Growth? The Effect of Billionaire Wealth, Income Distribution, and Poverty