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Roadblocks on the Road to Grandma's House: Fertility Consequences of Delayed Retirement

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  • Battistin, Erich
  • De Nadai, Michele
  • Padula, Mario

Abstract

We investigate the role of grandparental childcare for fertility decisions of their offspring. Exploiting pension reforms in Italy, we argue that delayed retirement means a negative shock to the supply of informal childcare for the next generation. We show that one additional grandparent available in the early child-bearing years increases by 5% the number of children. Effects are limited to the most familistic close-knits, and are not the mechanical consequence of changes in living arrangements, investment in education or labor supply. Given the Italian lowest low fertility, we conclude that pension reforms may have had unintended inter-generational effects.

Suggested Citation

  • 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.
  • Handle: RePEc:cpr:ceprdp:9945
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    References listed on IDEAS

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    1. repec:eee:jhecon:v:58:y:2018:i:c:p:215-227 is not listed on IDEAS
    2. Luca Stella, 2014. "Living Arrangements in Europe: Whether and Why Paternal Retirement Matters," "Marco Fanno" Working Papers 0177, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Luca Stella, 2017. "Living arrangements in Europe: whether and why paternal retirement matters," Review of Economics of the Household, Springer, vol. 15(2), pages 497-525, June.
    4. Bertoni, Marco & Brunello, Giorgio & Mazzarella, Gianluca, 2016. "Does Postponing Minimum Retirement Age Improve Healthy Behaviours Before Retirement? Evidence from Middle-Aged Italian Workers," IZA Discussion Papers 9834, Institute for the Study of Labor (IZA).
    5. Engl, Florian & Riedl, Arno & Weber, Roberto A., 2016. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," Research Memorandum 016, Maastricht University, Graduate School of Business and Economics (GSBE).
    6. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.

    More about this item

    Keywords

    Fertility; Informal Child Care; Pension Reforms;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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