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In this study, the effect of China’s family structure on the labor supply (economic activity participation and working hours) of married women in China is analyzed using 2015 China Health and Nutrition Survey(CHNS). In defining the family structure, the parents of married women and the parents of their husbands were distinguished separately. It is also different from previous research that the Instrumental variable method is used to take into account the endogeneity of the family structure. Those are main results. First, the effect of the family structure on the participation of married women in economic activities was found to be that the more women who live in the same home as their parents, the higher the participation of married women in economic activities. In particular, the participation in economic activities was higher when living with the mother of woman rather than the mother of her husband. Numerically, for married women who lived with their mothers, economic participation was 99 percent higher than for married women who did not. Second, regarding married women’s working hours, it was found that married women’s working hours increased significantly when they lived in the same living area or nearby areas, rather than when they lived in the same home. These results suggest that one of the reasons for the continued decline in women’s participation in economic activities in China since 2000 may have been linked to nuclear familyization. The analysis of the time series data of CHNS also supports this prediction, which shows that the proportion of non-parent households in China increased from 47.9 percent in 2000 to 61.5 percent in 2011. Therefore, in order to attract women to participate in economic activities, it can be considered how to subsidize housing purchases if they live with parents’ generation or live in a nearby area.