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To control problems of congestion and air pollution, many cities in developing countries have started to restrict vehicle ownership. Beijing’s license plate lottery has unintentionally reduced the employment rate of women who do not win.

To control problems of congestion and air pollution, Beijing restricts vehicle ownership, allowing only winners of a license plate lottery to add a vehicle. Using the quasiexperimental variation provided by this lottery, we examine the unintended consequences of preventing women from buying cars on their employment rates and work hours. Consistent with theory, effects differ sharply depending on whether the woman has a child. Among women without children, adding a vehicle causes large increases in the employment rate and hours worked. For women with children, adding a car has a negative though statistically insignificant impact on both employment rate and work hours. For women overall, restricting vehicles has a negative net impact on employment rates.