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Working Women and Fertility: the Role of Grandmothers’ Labor Force Participation

Author

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  • Ainhoa Aparicio-Fenoll
  • Marian Vidal-Fernandez

Abstract

Grandmothers’ availability for childcare has been shown to increase the labor force participation (LFP) and fertility of daughters. However, grandmothers’ childcare availability depends highly on their LFP. When grandmothers work, intergenerational income transfers to their daughters may increase at the expense of time transfers (through childcare). Using a Two-stage Two-steps Least Squares estimation, we exploit changes in legal retirement ages in Italy to explore the relationship between mothers’ LFP and daughters’ LFP and fertility choices. We show that even though grandmothers who participate in the labor force provide less childcare, their daughters are more likely to have children and less likely to participate in the labor force. This can be explained by the increase in family income as a result of mothers’ LFP offsetting the influence of the reduction in childcare. (JEL codes: J41, J24, M51, C41, C33, C35, J6, L1).

Suggested Citation

  • Ainhoa Aparicio-Fenoll & Marian Vidal-Fernandez, 2015. "Working Women and Fertility: the Role of Grandmothers’ Labor Force Participation," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 123-147.
    • Handle: RePEc:oup:cesifo:v:61:y:2015:i:1:p:123-147.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifu030
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    Citations

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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. 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.
    5. 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.
    6. Flavia Coda Moscarola & Riccardo Calcagno & Elsa Fornero, 2017. "oo busy to stay at work. How willing are Italian workers “to pay†for earlier retirement?," Economics Bulletin, AccessEcon, vol. 37(3), pages 1694-1707.
    7. Eiji Yamamura & Fumio Ohtake, 2023. "Family Structure, Gender and Subjective Well-being: Effect of Child ren before and after COVID 19 in Japan," Papers 2312.04411, arXiv.org.
    8. 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.
    9. Talamas Marcos, Miguel Ángel, 2023. "Grandmothers and the gender gap in the Mexican labor market," Journal of Development Economics, Elsevier, vol. 162(C).
    10. Kozhaya, Mireille, 2022. "The double burden: The impact of school closures on labor force participation of mothers," Ruhr Economic Papers 956, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Leimer, Birgit & van Ewijk, Reyn, 2022. "Are grandchildren good for you? Well-being and health effects of becoming a grandparent," Social Science & Medicine, Elsevier, vol. 313(C).
    12. Ainoa Aparicio Fenoll, 2020. "The uneven impact of women's retirement on their daughters' employment," Review of Economics of the Household, Springer, vol. 18(3), pages 795-821, September.
    13. Chiara Pronzato, 2017. "Fertility decisions and alternative types of childcare," IZA World of Labor, Institute of Labor Economics (IZA), pages 382-382, September.
    14. Rupert, Peter & Zanella, Giulio, 2018. "Grandchildren and their grandparents' labor supply," Journal of Public Economics, Elsevier, vol. 159(C), pages 89-103.
    15. Garrett Anstreicher & Joanna Venator, 2022. "To Grandmother’s House We Go: Childcare Time Transfers and Female Labor Mobility," Boston College Working Papers in Economics 1051, Boston College Department of Economics.
    16. Francisco Cabrera-Herández & María Padilla-Romo, 2021. "Women as Caregivers: Full-time Schools and Grandmothers’ Labor Supply," Working Papers 2021-03, University of Tennessee, Department of Economics.
    17. Edoardo Frattola, 2023. "Parental retirement and fertility decisions across family policy regimes," Temi di discussione (Economic working papers) 1417, Bank of Italy, Economic Research and International Relations Area.
    18. Felix Glaser & Rene Wiesinger, 2024. "Life After Loss: The Causal Effect of Parental Death on Daughters' Fertility," Economics working papers 2024-01, Department of Economics, Johannes Kepler University Linz, Austria.
    19. Osuna Victoria, 2021. "Subsidising Formal Childcare Versus Grandmothers' Time: Which Policy is More Effective?," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 15(1), pages 85-111, January.
    20. Julius Ilciukas, 2022. "Fertility and Parental Retirement," Tinbergen Institute Discussion Papers 22-021/V, Tinbergen Institute.

    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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