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Intergenerational Time Transfers and Internal Migration: Accounting for Low Spatial Mobility in Southern Europe

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Mendez, Ildefonso

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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 ‡ows 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 ndings. Simulation results show that a reduction in the price of private childcare services is more e¤ective 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 nd that families with children in which the wife works move signi cantly less than equivalent childless couples only if they live in a Southern European country. That e¤ect is found for both inter- and intra-regional migrations but is substantially larger in the former case.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8654.

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Date of creation: Feb 2008
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Handle: RePEc:pra:mprapa:8654

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Related research
Keywords: Geographic labour mobility Intergenerational transfers Child care Grandparenting Labour Supply.

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Find related papers by JEL classification:
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
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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  1. Daniela Del Boca & Daniela Vuri, 2006. "The Mismatch between Employment and Child Care in Italy: the Impact of Rationing," CHILD Working Papers wp08_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
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  2. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October. [Downloadable!] (restricted)
  3. Tatsiramos, Konstantinos, 2004. "Geographic Labour Mobility and Unemployment Insurance in Europe," IZA Discussion Papers 1253, Institute for the Study of Labor (IZA). [Downloadable!]
  4. 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. [Downloadable!]
  5. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Blackwell Publishing, vol. 47(1), pages 225-38, January. [Downloadable!] (restricted)
  6. Katharina Wrohlich, 2005. "The Excess Demand for Subsidized Child Care in Germany," Discussion Papers of DIW Berlin 470, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  7. 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.
  8. 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. [Downloadable!]
  9. Hassler, John & Mora, Jose & Storesletten, Kjetil & Zilibotti, Fabrizio, 2002. "A positive theory of geographical mobility and social insurance," Seminar Papers 705, Stockholm University, Institute for International Economic Studies. [Downloadable!]
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  10. Mont, Daniel, 1989. "Two Earner Family Migration: A Search Theoretic Approach," Journal of Population Economics, Springer, vol. 2(1), pages 55-72.
  11. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November. [Downloadable!] (restricted)
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