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Retirement, intergenerational time transfers, and fertility

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  • Eibich, Peter
  • Siedler, Thomas

Abstract

Retired parents might invest time in their adult children by providing childcare. Such intergenerational time transfers can have important implications for family decisions. This paper estimates the effects of parental retirement on the fertility of their adult children. We use representative panel data from Germany to link observations on parents and their adult children. We exploit eligibility ages for early retirement for identification in a regression discontinuity and pension reforms in a difference-in-differences design. The results suggest that parents’ retirement positively influences the fertility of their adult children, which is mainly driven by an increase in the likelihood of having a second birth. However, while parental retirement affects the timing of the fertility of their adult children, it does not affect the children's total fertility.

Suggested Citation

  • Eibich, Peter & Siedler, Thomas, 2020. "Retirement, intergenerational time transfers, and fertility," European Economic Review, Elsevier, vol. 124(C).
  • Handle: RePEc:eee:eecrev:v:124:y:2020:i:c:s0014292120300246
    DOI: 10.1016/j.euroecorev.2020.103392
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    3. Wu, Qi & Gao, Xin, 2020. "The Effects of Parental Retirement on Adult Children’s Labor Supply: Evidence From China," MPRA Paper 103914, University Library of Munich, Germany.

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    More about this item

    Keywords

    Retirement; Fertility; Intergenerational transfer; Time use;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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