Discussion Paper Series – CRC TR 224 Discussion Paper No. 187 Project A 03 The Economic Motives for Foot-binding Xinyu Fan* Lingwei Wu** June 2020 *Cheung Kong Graduate School of Business. Email:
[email protected]. ** Department of Economics, University of Bonn. Email:
[email protected]. Funding by the Deutsche Forschungsgemeinschaft (DFG, German Research Foundation) through CRC TR 224 is gratefully acknowledged. Collaborative Research Center Transregio 224 - www.crctr224.de Rheinische Friedrich-Wilhelms-Universität Bonn - Universität Mannheim ∗ The Economic Motives for Foot-binding † ‡ Xinyu Fan and Lingwei Wu April, 2020 Abstract We study foot-binding – a practice that reshaped millions of women’s feet in his- torical China, yet in lack of a consistent explanation of its temporal, regional, class, and size variation. We present a model of foot-binding, where it serves as a premar- ital investment tool in response to a male-specific social mobility shock, and women trade off labor distortions for marriage prospects. Furthermore, the regional shifts on both sides of the trade-off explained its observed variation. Using county-level archival data on foot-binding, we corroborate the theory with empirical evidence. JEL Codes: O15, J16, N35, Z10 Key Words: Gender Norm, Marriage Market, Labor, Foot-binding ∗ We are deeply indebted to Albert Park for his mentoring and guidance, and James Kung, Paola Giuliano, Jane Zhang for insights and support. This work has benefited from the comments of Aloysius Siow, Bishnupriya Gupta, Carol Shiue, Christian Bayer, Christian Dippel, Cornelius Christian, Daniel Hamermesh, Elaine Liu, Erik Hornung, Fabio Mariani, Felipe Valencia Caicedo, Ingela Alger, James Fenske, James Z.