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

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  • Mendez, Ildefonso

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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Bibliographic Info

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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Keywords: Geographic labour mobility; Intergenerational transfers; Child care; Grandparenting; Labour Supply;

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References

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  1. John Hassler & José V. Rodríguez Mora & Kjetil Storesletten & Fabrizio Zilibotti, 2005. "A Positive Theory Of Geographic Mobility And Social Insurance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(1), pages 263-303, 02.
  2. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October.
  3. repec:ese:iserwp:2000-09 is not listed on IDEAS
  4. 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.
  5. 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.
  6. Tatsiramos, Konstantinos, 2004. "Geographic Labour Mobility and Unemployment Insurance in Europe," IZA Discussion Papers 1253, Institute for the Study of Labor (IZA).
  7. 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).
  8. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
  9. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, vol. 9(4), pages 505-518, November.
  10. 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.
  11. Mont, Daniel, 1989. "Two Earner Family Migration: A Search Theoretic Approach," Journal of Population Economics, Springer, vol. 2(1), pages 55-72.
  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. 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.
  14. 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.
  15. 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.
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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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