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 womens 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.
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.:
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.
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