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With Strings Attached: Grandparent-Provided Child Care and Female Labor Market Outcomes

Author

Listed:
  • Eva Garcia-Moran

    (University of Wuerzburg)

  • Zoe Kuehn

    (Universidad Autonoma de Madrid)

Abstract

Grandparents are regular providers of free child care. Similar to other forms of child care, availability of grandparent-provided child care has positive effects on fertility and mothers' employment. However, grandparent-provided child care requires residing close to parents or in-laws which may imply spatial restrictions for labor markets. We find that West German mothers who reside close to parents or in-laws have lower wages. We build a model of residence choice, fertility decisions, and female labor force participation that can account for the observed relationships. We simulate our model to analyze how women's decisions would change if the availability of grandparent-provided child care or family policies were altered. If out-of-pocket child care costs were lowered to the Swedish level, fertility, mothers' labor force participation, and geographical mobility would increase. If more households had access to free grandparent-provided child care, fertility and mothers' labor force participation would also increase, but geographical mobility would be reduced. (Copyright: Elsevier)

Suggested Citation

  • Eva Garcia-Moran & Zoe Kuehn, 2017. "With Strings Attached: Grandparent-Provided Child Care and Female Labor Market Outcomes," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 80-98, January.
  • Handle: RePEc:red:issued:14-169
    DOI: 10.1016/j.red.2016.09.004
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    Citations

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    Cited by:

    1. Nezih Guner & Ezgi Kaya & Virginia Sánchez-Marcos, 2014. "Gender gaps in Spain: policies and outcomes over the last three decades," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(1), pages 61-103, March.
    2. Landmann, Andreas & Seitz, Helke & Steiner, Susan, 2017. "Patrilocal Residence and Female Labour Supply," IZA Discussion Papers 10890, Institute for the Study of Labor (IZA).
    3. Bruno Arpino & Chiara D. Pronzato & Lara P. Tavares, 2012. "Mothers’ labour market participation: Do grandparents make it easier?," Carlo Alberto Notebooks 277, Collegio Carlo Alberto.
    4. Soo-Yeon Yoon, 2017. "The influence of a supportive environment for families on women’s fertility intentions and behavior in South Korea," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 36(7), pages 227-254, January.
    5. Andreas Landmann & Helke Seitz & Susan Steiner, 2017. "Patrilocal Residence and Female Labour Supply," Discussion Papers of DIW Berlin 1705, DIW Berlin, German Institute for Economic Research.
    6. Del Boca, Daniela & Piazzalunga, Daniela & Pronzato, Chiara D., 2014. "Early Child Care and Child Outcomes: The Role of Grandparents," IZA Discussion Papers 8565, Institute for the Study of Labor (IZA).
    7. Erich Battistin & Michele De Nadai & Mario Padula, 2015. "Roadblocks on the Road to Grandma�s House: Fertility Consequences of Delayed Retirement," Working Papers 748, Queen Mary University of London, School of Economics and Finance.
    8. Battistin, Erich & De Nadai, Michele & Padula, Mario, 2014. "Roadblocks on the Road to Grandma's House: Fertility Consequences of Delayed Retirement," CEPR Discussion Papers 9945, C.E.P.R. Discussion Papers.
    9. Ke Shen & Ping Yan & Yi Zeng, 2016. "Coresidence with elderly parents and female labor supply in China," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(23), pages 645-670, September.
    10. Daniela Del Boca, 2015. "Child Care Arrangements and Labor Supply," IDB Publications (Working Papers) 88074, Inter-American Development Bank.
    11. Daniela Del Boca & Daniela Piazzalunga & Chiara Daniela Pronzato, 2014. "Early child care and child outcomes: the role of grandparents. Evidence from the Millennium Cohort Study," CHILD Working Papers Series 24, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    12. Peri, Giovanni & Romiti, Agnese & Rossi, Mariacristina, 2015. "Immigrants, domestic labor and women's retirement decisions," Labour Economics, Elsevier, vol. 36(C), pages 18-34.
    13. Bruno Arpino & Chiara Pronzato & Lara Tavares, 2014. "The Effect of Grandparental Support on Mothers’ Labour Market Participation: An Instrumental Variable Approach," European Journal of Population, Springer;European Association for Population Studies, vol. 30(4), pages 369-390, November.
    14. Landmann, Andreas & Seitz, Helke & Steiner, Susan, 2017. "Intergenerational Coresidence and Female Labour Supply," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168282, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    grandparent-provided child care; fertility; employment; spatial restrictions; regional labor markets;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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