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When Grandmothers Work Longer: Pension Reform, Family Labor Supply, and Grandchildren’s Outcomes

Author

Listed:
  • Katja M. Kaufmann
  • Yasemin Özdemir
  • Han Ye

Abstract

Key MessagesPension reforms that delay retirement can reduce female workers’ labor supply by 40 minutes for every extra hour their mothers workThe main channel is reduced grandmaternal childcare: only mothers with young kids whose mothers are subject to the pension reform are affectedChildren aged 4–7 score 31 percent of a standard deviation higher on highstakes tests due to increased maternal careThe loss of grandmaternal childcare support exacerbates the child penalty – that is, the decrease in hours worked –, which reaches 36 percent eight years post-first birthPension design should internalize cross-generational spillovers and expand quality childcare provision

Suggested Citation

  • Katja M. Kaufmann & Yasemin Özdemir & Han Ye, 2026. "When Grandmothers Work Longer: Pension Reform, Family Labor Supply, and Grandchildren’s Outcomes," EconPol Forum, CESifo, vol. 27(03), pages 22-26, July.
    • Handle: RePEc:ces:epofor:v:27:y:2026:i:03:p:22-26
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