Intergenerational Time Transfers and Childcare
Abstract
Although intergenerational transfers of time in the form of grandparenting are substantial, little is known about their role and importance. In this paper, we calibrate an overlapping generations model extended to allow for both time and monetary transfers to the US economy. We use simulations to show that time transfers have important positive effects on labor supply and capital accumulation. We also find that subsidizing the time of the retired spent grandparenting is the most effective child care policy when time transfers are allowed, while subsidizing child care expenses is the most effective when time transfers are not. They both lead to higher levels of child care with positive effects on output and capital accumulation. (Copyright: Elsevier)Download Info
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Bibliographic Info
Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.
Volume (Year): 6 (2003)
Issue (Month): 2 (April)
Pages: 431-454
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Related research
Keywords: Intergenerational transfers; Time use; Child care; Home production; Grandparenting; Overlapping generations;Find related papers by JEL classification:
- J1 - Labor and Demographic Economics - - Demographic Economics
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
- D9 - Microeconomics - - Intertemporal Choice and Growth
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