Enforcing government policies: The role of state-owned enterprise in China’s one child policy

•State-owned enterprises can function as an instrument to enforce government policy.•The one child policy reduced people’s fertility for those working in state-owned than in non-state-owned enterprises.•There is no significant difference in fertility desire between people working in state-owned and non-state-owned enterprises.•The findings are not due to other confounding events such as the opening-up policy. State-owned enterprises can function as an instrument to enforce government policies. Using data from the China General Social Survey, we evaluate the role and effectiveness of state-owned enterprises in enforcing the one child policy and affecting people’s fertility decisions. The estimates show that the one child policy in China significantly reduced people’s fertility for those working in state-owned enterprises than in non-state-owned firms. The findings are not driven by different fertility desires or other confounding events such as the opening-up policy. Such insights have valuable implications for the enforcement of population policies around the globe.