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Intergenerational Time Transfers And Internal Migration: Accounting For Low Spatial Mobility In Southern Europe

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    Abstract

    This paper examines the hypothesis that living close to grandparents is optimal for Southern European young couples with children in which the wife works given the combination of, on the one hand, substantial help flows in the form of grandparenting and, on the other hand, the shortage in the provision of formal childcare services in these countries. I develop a partial equilibrium job search model that incorporates these findings. Simulation results show that a reduction in the price of private childcare services is more effective in increasing women’s employment, fertility and inter-regional migration rates than an increase in the availability of publicly funded childcare slots. Using ECHP data I find that families with children in which the wife works move significantly less than equivalent childless couples only if they live in a Southern European country. That effect is found for both inter- and intra-regional migrations but is substantially larger in the former case.

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    Bibliographic Info

    Paper provided by CEMFI in its series Working Papers with number wp2008_0811.

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    Date of creation: Jun 2008
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    Handle: RePEc:cmf:wpaper:wp2008_0811

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    Related research

    Keywords: Geographic labour mobility; intergenerational transfers; child care; grandparenting; labour supply.;

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    References

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    1. Antonio Rangel, 2003. "Forward and Backward Intergenerational Goods: Why Is Social Security Good for the Environment?," American Economic Review, American Economic Association, vol. 93(3), pages 813-834, June.
    2. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
    3. Kaivan Munshi & Mark Rosenzweig, 2009. "Why is Mobility in India so Low? Social Insurance, Inequality, and Growth," NBER Working Papers 14850, National Bureau of Economic Research, Inc.
    4. John Hassler & José V. Rodriguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2002. "A Positive Theory of Geographic Mobility and Social Insurance," CESifo Working Paper Series 791, CESifo Group Munich.
    5. Wadsworth, Jonathan, 1991. "Unemployment Benefits and Search Effort in the UK Labour Market," Economica, London School of Economics and Political Science, vol. 58(229), pages 17-34, February.
    6. Wrohlich, Katharina, 2005. "The Excess Demand for Subsidized Child Care in Germany," IZA Discussion Papers 1515, Institute for the Study of Labor (IZA).
    7. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct.
    8. Zvi Eckstein & Kenneth I. Wolpin, 1989. "The Specification and Estimation of Dynamic Stochastic Discrete Choice Models: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 24(4), pages 562-598.
    9. Mont, Daniel, 1989. "Two Earner Family Migration: A Search Theoretic Approach," Journal of Population Economics, Springer, vol. 2(1), pages 55-72.
    10. Bettio, Francesca & Villa, Paola, 1998. "A Mediterranean Perspective on the Breakdown of the Relationship between Participation and Fertility," Cambridge Journal of Economics, Oxford University Press, vol. 22(2), pages 137-71, March.
    11. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    12. Viitanen, Tarja K & Arnaud Chevalier, 2003. "The Supply of Childcare in Britain: Do Mothers Queue for Childcare?," Royal Economic Society Annual Conference 2003 211, Royal Economic Society.
    13. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
    14. Del Boca, Daniela & Locatelli, Marilena & Vuri, Daniela, 2004. "Child Care Choices by Italian Households," IZA Discussion Papers 983, Institute for the Study of Labor (IZA).
    15. Daniela Del Boca & Daniela Vuri, 2007. "The mismatch between employment and child care in Italy: the impact of rationing," Journal of Population Economics, Springer, vol. 20(4), pages 805-832, October.
    16. Konstantinos Tatsiramos, 2009. "Geographic labour mobility and unemployment insurance in Europe," Journal of Population Economics, Springer, vol. 22(2), pages 267-283, April.
    17. John M. Barron & Wesley Mellow, 1979. "Search Effort in the Labor Market," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 389-404.
    18. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    19. repec:ese:iserwp:2000-09 is not listed on IDEAS
    20. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
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    Cited by:
    1. García-Morán, Eva & Kuehn, Zoe, 2013. "With strings attached: Grandparent-provided child care and female labor market outcomes," MPRA Paper 48953, University Library of Munich, Germany.
    2. García-Morán, Eva & Kuehn, Zoe, 2012. "With strings attached: Grandparent-provided child care, fertility, and female labor market outcomes," MPRA Paper 37001, University Library of Munich, Germany.

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