China's 'Two-Child Policy' paradoxically caused female fund managers to significantly outperform their male colleagues.
April 1, 2026
Original Paper
Strategic Responses to Preemptive Motherhood Penalty: Evidence from China’s Two-Child Policy and Female Fund Managers
SSRN · 6504549
The Takeaway
Because the policy increased market fears that women would be distracted by motherhood, female managers strategically adopted more aggressive and successful investment styles to 'signal' their career dedication. This effort to overcome increased discrimination led them to work harder and more effectively, beating the market to prove their focus.
From the abstract
This study investigates the impact of China’s 2016 universal two-child policy on mutual fund managers’ performance. Using a Difference-in-Differences approach, we find that female managers of childbearing age exhibit stronger post-policy performance in fund returns and abnormal returns relative to the control group. The gains reflect strategic responses to intensified gender discrimination, as the policy increases maternity expectations, reduces hiring opportunities, and intensifies investor scr