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Working Women and Fertility: the Role of Grandmothers’ Labor Force Participation

Author

Listed:
  • Ainhoa Aparicio-Fenoll
  • Marian Vidal-Fernandez

Abstract

Grandmothers’ availability for childcare has been shown to increase the labor force participation (LFP) and fertility of daughters. However, grandmothers’ childcare availability depends highly on their LFP. When grandmothers work, intergenerational income transfers to their daughters may increase at the expense of time transfers (through childcare). Using a Two-stage Two-steps Least Squares estimation, we exploit changes in legal retirement ages in Italy to explore the relationship between mothers’ LFP and daughters’ LFP and fertility choices. We show that even though grandmothers who participate in the labor force provide less childcare, their daughters are more likely to have children and less likely to participate in the labor force. This can be explained by the increase in family income as a result of mothers’ LFP offsetting the influence of the reduction in childcare. (JEL codes: J41, J24, M51, C41, C33, C35, J6, L1).

Suggested Citation

  • Ainhoa Aparicio-Fenoll & Marian Vidal-Fernandez, 2015. "Working Women and Fertility: the Role of Grandmothers’ Labor Force Participation," CESifo Economic Studies, CESifo Group, vol. 61(1), pages 123-147.
    • Handle: RePEc:oup:cesifo:v:61:y:2015:i:1:p:123-147.
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    File URL: http://hdl.handle.net/10.1093/cesifo/ifu030
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    More about this item

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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