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Grandchild care, intergenerational transfers, and grandparents’ labor supply

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  • Christine Ho

Abstract

One-fifth of children aged below five with employed mothers benefit from grandparent provided child care as their main source of daycare in the US. Using data from the health and retirement study, we investigate how grandchild care needs relate to intergenerational transfers of time and money and grandparents’ labor supply behavior. We find that grandparents with a new born grandchild are more likely to provide grandchild care while married grandparents are also more likely to be employed and provide financial help. Grandparents with grandchildren living close by provided higher time transfers while married grandmothers with resident grandchildren also worked longer hours. Copyright Springer Science+Business Media New York 2015

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  • Christine Ho, 2015. "Grandchild care, intergenerational transfers, and grandparents’ labor supply," Review of Economics of the Household, Springer, vol. 13(2), pages 359-384, June.
    • Handle: RePEc:kap:reveho:v:13:y:2015:i:2:p:359-384
    DOI: 10.1007/s11150-013-9221-x
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    Cited by:

    1. Eiji Yamamura, 2021. "View about consumption tax and grandchildren," Papers 2102.04658, arXiv.org.
    2. Wolfgang Frimmel & Martin Halla & Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2022. "Grandmothers’ Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1645-1689.
    3. Eibich, Peter & Siedler, Thomas, 2020. "Retirement, intergenerational time transfers, and fertility," European Economic Review, Elsevier, vol. 124(C).
    4. Reo Takaku, 2019. "The wall for mothers with first graders: availability of afterschool childcare and continuity of maternal labor supply in Japan," Review of Economics of the Household, Springer, vol. 17(1), pages 177-199, March.
    5. Gema Zamarro, 2020. "Family labor participation and child care decisions: the role of grannies," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(3), pages 287-312, September.
    6. Karsten Hank & Giulia Cavrini & Giorgio Gessa & Cecilia Tomassini, 2018. "What do we know about grandparents? Insights from current quantitative data and identification of future data needs," European Journal of Ageing, Springer, vol. 15(3), pages 225-235, September.
    7. Backhaus, Andreas & Barslund, Mikkel, 2021. "The effect of grandchildren on grandparental labor supply: Evidence from Europe," European Economic Review, Elsevier, vol. 137(C).
    8. Bruno Arpino & Valeria Bordone, 2017. "Regular provision of grandchild care and participation in social activities," Review of Economics of the Household, Springer, vol. 15(1), pages 135-174, March.
    9. Massimiliano Bratti & Tommaso Frattini & Francesco Scervini, 2018. "Grandparental availability for child care and maternal labor force participation: pension reform evidence from Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1239-1277, October.
    10. Rupert, Peter & Zanella, Giulio, 2018. "Grandchildren and their grandparents' labor supply," Journal of Public Economics, Elsevier, vol. 159(C), pages 89-103.
    11. Daniela Boca & Daniela Piazzalunga & Chiara Pronzato, 2018. "The role of grandparenting in early childcare and child outcomes," Review of Economics of the Household, Springer, vol. 16(2), pages 477-512, June.
    12. Belan Pascal & Moussault Erwan, 2020. "Inheritance Taxation in a Model with Intergenerational Time Transfers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 20(1), pages 1-19, January.
    13. Christine Ho, 2019. "Child’s gender, parental monetary investments and care of elderly parents in China," Review of Economics of the Household, Springer, vol. 17(3), pages 741-774, September.
    14. Eiji Yamamura & Giorgio Brunello, 2023. "Effect of grandchildren on the happiness of grandparents: Does the grandparent's child's gender matter?," Asian Economic Journal, East Asian Economic Association, vol. 37(2), pages 149-163, June.
    15. Snopkowski, Kristin & Sear, Rebecca, 2015. "Grandparental help in Indonesia is directed preferentially towards needier descendants: A potential confounder when exploring grandparental influences on child health," Social Science & Medicine, Elsevier, vol. 128(C), pages 105-114.
    16. Eiji Yamamura & Yoshiro Tsustsui, 2021. "The impact of closing schools on working from home during the COVID-19 pandemic: evidence using panel data from Japan," Review of Economics of the Household, Springer, vol. 19(1), pages 41-60, March.
    17. Huang Xiaobing & Chen Meng, 2022. "The Impact of Internet Use on Community Participation of Older Adults: Evidence From China," SAGE Open, , vol. 12(2), pages 21582440221, May.
    18. Jermaine Toney, 2022. "Is there wealth stability across generations in the U.S.? Evidence from panel study, 1984–2017," Contemporary Economic Policy, Western Economic Association International, vol. 40(4), pages 551-567, October.
    19. Ho Christine, 2019. "Optimal Disability Insurance with Informal Child Care," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 19(2), pages 1-42, April.
    20. Kwon, Sarah Jiyoon, 2023. "Grandparents and Parental Labor Supply during COVID-19 Pandemic," OSF Preprints jxyvn, Center for Open Science.
    21. Xinxin Ma, 2022. "Grandchildren Care and Labor Supply of Middle-Aged Grandmothers: Evidence from China," Journal of Family and Economic Issues, Springer, vol. 43(3), pages 581-598, September.
    22. Lin, Mengyun & Wang, Qing, 2019. "Center-based childcare expansion and grandparents' employment and well-being," Social Science & Medicine, Elsevier, vol. 240(C).
    23. Haiyue Yu & Jin Cao & Shulong Kang, 2023. "Fertility cost, grandparental childcare, and female employment," Empirical Economics, Springer, vol. 64(3), pages 1067-1104, March.

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    More about this item

    Keywords

    Grandchild care; Intergenerational transfers; Grandparents’ labor supply; D13; J13; J14; J22;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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