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Do Downward Private Transfers Enhance Maternal Labor Supply? Evidence from around Europe

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Author Info
Ralitza Dimova () (Brunel University, CNAV and IZA Bonn)
François-Charles Wolff () (LEN-CEBS, University of Nantes, CNAV and INED)

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Abstract

Drawing on a theoretical model of downward private transfers with endogenous labor supply and recursive econometric models based on 2317 mother-daughter pairs from the 2003 SHARE data on 10 European countries, we investigate the impact of private transfers on the career choices of transfer-receiving young mothers. For Europe as a whole, we find a strong positive impact of grandchild care on the labor force participation decision of the mother, but no clear impact of either grandchild care or monetary transfers on the mother’s degree of labor market involvement. The link between family transfers and labor supply exhibits an interesting pattern across institutional settings. Finally, while both recipients and donors with better endowments are more likely to participate in a monetary transaction, time transfers are such that mothers with lower level of human capital tend to assist the professional development of their better endowed daughters.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2469.

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Length: 33 pages
Date of creation: Nov 2006
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Handle: RePEc:iza:izadps:dp2469

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Related research
Keywords: grandchild care; labor participation; financial transfers;

Other versions of this item:

Find related papers by JEL classification:
D64 - Microeconomics - - Welfare Economics - - - Altruism
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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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  2. Ronald G. Ehrenberg & Daniel R. Sherman, 1987. "Employment While in College, Academic Achievement and Post-College Outcomes: A Summary of Results," NBER Working Papers 1742, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Cox, Donald, 1987. "Motives for Private Income Transfers," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 508-46, June. [Downloadable!] (restricted)
  5. Blau, David M & Robins, Philip K, 1988. "Child-Care Costs and Family Labor Supply," The Review of Economics and Statistics, MIT Press, vol. 70(3), pages 374-81, August. [Downloadable!] (restricted)
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  7. Heckman, James J, 1974. "Effects of Child-Care Programs on Women's Work Effort," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S136-S163, Part II, . [Downloadable!] (restricted)
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  8. Gary S. Becker & Nigel Tomes, 1976. "Child Endowments, and the Quantity and Quality of Children," NBER Working Papers 0123, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  10. Wolff, Francois-Charles, 2006. "Microeconomic models of family transfers," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier. [Downloadable!] (restricted)
  11. Ogawa, Naohiro & Ermisch, John F, 1996. "Family Structure, Home Time Demands, and the Employment Patterns of Japanese Married Women," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 677-702, October. [Downloadable!] (restricted)
  12. Andreoni, James, 1990. "Impure Altruism and Donations to Public Goods: A Theory of Warm-Glow Giving?," Economic Journal, Royal Economic Society, vol. 100(401), pages 464-77, June. [Downloadable!] (restricted)
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  15. Beetsma, Roel & Bettendorf, Leon & Broer, Peter, 2003. "The budgeting and economic consequences of ageing in the Netherlands," Economic Modelling, Elsevier, vol. 20(5), pages 987-1013, September. [Downloadable!] (restricted)
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  16. François-Charles Wolff, 2006. "Parental transfers and the labor supply of children," Journal of Population Economics, Springer, vol. 19(4), pages 853-877, October. [Downloadable!] (restricted)
  17. Pollak, Robert A, 1988. "Tied Transfers and Paternalistic Preferences," American Economic Review, American Economic Association, vol. 78(2), pages 240-44, May. [Downloadable!] (restricted)
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Cited by:
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  1. Karsten Hank, 2008. "Generationenbeziehungen im alternden Europa: Analysepotenziale und Befunde des Survey of Health, Ageing and Retirement in Europe," MEA discussion paper series 08161, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
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