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Grandparents' Childcare and Female Labor Force Participation

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Author Info

  • Posadas, Josefina

    ()
    (World Bank)

  • Vidal-Fernández, Marian

    ()
    (University of New South Wales)

Abstract

In the U.S., grandparents look after one in five preschool children of employed women. Does this source of informal childcare increase female labor force participation and if so, up to what extent? The main challenge to answer this question is that a positive relationship between grandparents’ childcare and female labor force participation might not be causal. We use the maternal grandmother’s death as an instrument of grandparents’ childcare to measure the effect of grandparents’ childcare on maternal labor force participation (MLFP). We compare OLS and IV estimates and find that grandparents’ childcare increases MLFP by 15 percentage points on average. We argue that most of the effect is driven by families from socio-economically disadvantaged backgrounds.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6398.

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Length: 27 pages
Date of creation: Feb 2012
Date of revision:
Publication status: published in: IZA Journal of Labor Policy, 2013, 2:14
Handle: RePEc:iza:izadps:dp6398

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Related research

Keywords: childcare; maternal labor force participation; grandparents; NLSY;

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References

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  1. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, 08.
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Cited by:
  1. Christine Ho, 2013. "Grandchild Care, Intergenerational Transfers, and Grandparents’ Labor Supply," Working Papers 06-2013, Singapore Management University, School of Economics.
  2. P. Rupert & G. Zanella, 2014. "Grandchildren and Their Grandparents’ Labor Supply," Working Papers wp937, Dipartimento Scienze Economiche, Universita' di Bologna.

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