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Grandmothers’ Labor Supply

Author

Listed:
  • Wolfgang Frimmel
  • Martin Halla
  • Bernhard Schmidpeter
  • Rudolf Winter-Ebmer

Abstract

We use high-quality administrative data from Austria to estimate the effect of grandmotherhood on the labor supply decision of older workers. Assuming that grandmothers cannot predict the exact date of conception of their grandchild, we identify the effect of the first grandchild on employment. Our timing-of-events approach shows that a first grandchild increases the probability of leaving the labor market by 9 percent. This effect is stronger when informal childcare is more valuable and when grandmothers live close to the grandchild. To assess the effect of an additional grandchild, we also use twin births among the first grandchild as instruments.

Suggested Citation

  • Wolfgang Frimmel & Martin Halla & Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2022. "Grandmothers’ Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1645-1689.
    • Handle: RePEc:uwp:jhriss:v:57:y:2022:i:5:p:1645-1689
    Note: DOI: 10.3368/jhr.58.1.0419-10144R1
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    Cited by:

    1. Halla, Martin & Schmidpeter, Bernhard, 2024. "Werther at work: Intra-firm spillovers of suicides," Ruhr Economic Papers 1135, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    2. Gema Zamarro, 2020. "Family labor participation and child care decisions: the role of grannies," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(3), pages 287-312, September.
    3. Haapanen, Mika & Pehkonen, Jaakko & Seppälä, Ville, 2025. "Parental earnings response to children's job loss: Evidence from Finland," Labour Economics, Elsevier, vol. 94(C).
    4. Chen, Yanran & Lyu, Youji, 2025. "Grandchild care and grandparents’ labor supply," Economic Modelling, Elsevier, vol. 143(C).
    5. Rupert, Peter & Zanella, Giulio, 2018. "Grandchildren and their grandparents' labor supply," Journal of Public Economics, Elsevier, vol. 159(C), pages 89-103.
    6. Baldi, Mauro Maria & Coppier, Raffaella & Michetti, Elisabetta, 2025. "Elderly labor supply, endogenous grandparental childcare, and fertility in an OLG model," Economic Modelling, Elsevier, vol. 149(C).
    7. repec:osf:osfxxx:jxyvn_v1 is not listed on IDEAS
    8. Leimer, Birgit & van Ewijk, Reyn, 2022. "Are grandchildren good for you? Well-being and health effects of becoming a grandparent," Social Science & Medicine, Elsevier, vol. 313(C).
    9. Backhaus, Andreas & Barslund, Mikkel, 2021. "The effect of grandchildren on grandparental labor supply: Evidence from Europe," European Economic Review, Elsevier, vol. 137(C).
    10. Sarah Jiyoon Kwon, 2024. "Grandparents and parental labor supply during the COVID-19 pandemic," Review of Economics of the Household, Springer, vol. 22(3), pages 935-964, September.
    11. Nguyen, Cuong Viet & Tarp, Finn, 2023. "Cash Transfers and Labor Supply: New Evidence on Impacts and Mechanisms," GLO Discussion Paper Series 1243, Global Labor Organization (GLO).
    12. Aguilar-Gomez, Sandra & Arceo-Gomez, Eva O. & De la Cruz Toledo, Elia, 2026. "Inside the black box of child penalties: Unpaid work and household structure," Journal of Development Economics, Elsevier, vol. 178(C).
    13. Felix Glaser & Rene Wiesinger, 2025. "Life after loss: the causal effect of parental death on daughters’ fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(1), pages 1-40, March.
    14. Ueno, Yuko & 上野, 有子 & Usui, Emiko & 臼井, 恵美子, 2021. "The Effects of Providing Childcare on Grandmothers’ Employment and Mental Health in Japan, 日本で孫の育児が祖母の就業とメンタルヘルスに及ぼす影響," CIS Discussion paper series 691, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    15. Francesca Zanasi & Inge Sieben & Wilfred Uunk, 2020. "Work history, economic resources, and women’s labour market withdrawal after the birth of the first grandchild," European Journal of Ageing, Springer, vol. 17(1), pages 109-118, March.
    16. Giam Pietro Cipriani & Tamara Fioroni, 2024. "Grandparental childcare, family allowances and retirement policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(6), pages 1669-1692, December.
    17. Kwon, Sarah Jiyoon, 2023. "Grandparents and Parental Labor Supply during COVID-19 Pandemic," OSF Preprints jxyvn, Center for Open Science.
    18. Ilciukas, Julius, 2023. "Fertility and parental retirement," Journal of Public Economics, Elsevier, vol. 226(C).
    19. Mara Barschkett & C. Katharina Spieß & Elena Ziege, 2021. "Does Grandparenting Pay off for the Next Generations? Intergenerational Effects of Grandparental Care," Discussion Papers of DIW Berlin 1975, DIW Berlin, German Institute for Economic Research.
    20. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Intergenerational Effects of Grandparental Care on Children and Parents," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242397, Verein für Socialpolitik / German Economic Association.
    21. Peter Eibich & Xianhua Zai, 2024. "Are the grandparents alright? The health consequences of grandparental childcare provision," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(4), pages 1-32, December.

    More about this item

    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

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