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Fertility cost, grandparental childcare, and female employment

Author

Listed:
  • Haiyue Yu

    (Dongbei University of Finance and Economics)

  • Jin Cao

    (Norges Bank
    CESifo)

  • Shulong Kang

    (Dongbei University of Finance and Economics)

Abstract

This paper considers the role of grandparental childcare in explaining China’s extraordinarily high female labor market participation rate and low wage penalty. Using a novel and high-quality dataset combined with a creative new identification strategy, we find that grandparental childcare reduces young women’s drop-out from the labor market, especially those with a higher education level living in an urban area, and it also improves mothers’ labor income. We further show that grandparents’ marriage status and home location do not affect the feasibility of grandparental childcare. Our research reveals that grandparental childcare, as a remedy for insufficient supply of public childcare services, supports mothers in the labor market, sustaining high mobility in the labor market in China.

Suggested Citation

  • Haiyue Yu & Jin Cao & Shulong Kang, 2023. "Fertility cost, grandparental childcare, and female employment," Empirical Economics, Springer, vol. 64(3), pages 1067-1104, March.
    • Handle: RePEc:spr:empeco:v:64:y:2023:i:3:d:10.1007_s00181-022-02280-y
    DOI: 10.1007/s00181-022-02280-y
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    References listed on IDEAS

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    More about this item

    Keywords

    Grandparental childcare; Female employment; Human capital accumulation;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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