In rural areas, where approximately 70 percent of the people live, a second child is generally allowed after five years, but this provision sometimes applies only if the first child is a girl — a clear acknowledgment of the traditional preference for boys. A third child is allowed among some ethnic minorities and in remote, underpopulated areas. The policy is underpinned by a system of rewards and penalties, which are largely meted out at the discretion of local officials and hence vary widely. They include economic incentives for compliance and substantial fines, confiscation of belongings, and dismissal from work for noncompliance.