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Grandparental Availability for Child Care and Maternal Employment: Pension Reform Evidence from Italy

Author

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  • Massimiliano Bratti

    (Università degli Studi di Milano, IZA and Centro Studi Luca d’Agliano)

  • Tommaso Frattini

    (Università degli Studi di Milano, CReAM, IZA, Centro Studi Luca d’Agliano and Dondena)

  • Francesco Scervini

    (HDCP, Istituto Universitario di Studi Superiori di Pavia)

Abstract

In this paper, we exploit pension reform-induced changes in retirement eligibility requirements to assess the role of grandparental child care availability in the employment of women who have children under 15. We focus on Italy for two reasons: first, it has low rates of female employment and little formal child care provision, and second, it has undergone several pension reforms in a relatively short time span. Our analysis shows that, among the women studied, those whose own mothers are retirement eligible have a 13 percent higher probability of being employed than those whose mothers are ineligible. The pension eligibility of maternal grandfathers and paternal grandparents, however, has no significant effect on the women’s employment probability. We also demonstrate that the eligibility of maternal grandmothers mainly captures the effect of their availability for child care. Hence, pension reforms, by potentially robbing households of an important source of flexible, low-cost child care, could have unintended negative consequences for the employment rates of women with children.

Suggested Citation

  • Massimiliano Bratti & Tommaso Frattini & Francesco Scervini, 2016. "Grandparental Availability for Child Care and Maternal Employment: Pension Reform Evidence from Italy," Development Working Papers 391, Centro Studi Luca d'Agliano, University of Milano, revised 07 May 2016.
  • Handle: RePEc:csl:devewp:391
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    Cited by:

    1. Chiara Ardito, 2017. "Rising pension age in Italy: Employment response and Program substitution," LABORatorio R. Revelli Working Papers Series 155, LABORatorio R. Revelli, Centre for Employment Studies.
    2. Frimmel, Wolfgang & Halla, Martin & Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2017. "Grandmothers’ Labor Supply," Economics Series 336, Institute for Advanced Studies.
    3. Eibich, Peter & Siedler, Thomas, 2020. "Retirement, intergenerational time transfers, and fertility," European Economic Review, Elsevier, vol. 124(C).
    4. 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.
    5. Amuedo-Dorantes, Catalina & Borra, Cristina, 2021. "The role of non-contributory pensions on internal mobility in Spain," Labour Economics, Elsevier, vol. 70(C).
    6. Francesca Carta & Marta De Philippis, 2021. "Working horizon and labour supply: the effect of raising the full retirement age on middle-aged individuals," Temi di discussione (Economic working papers) 1314, Bank of Italy, Economic Research and International Relations Area.
    7. Serena Trucchi & Elsa Fornero & Mariacristina Rossi, 2018. "Retirement rigidities and the gap between effective and desired labour supply by older workers," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-19, December.
    8. Backhaus, Andreas & Barslund, Mikkel, 2021. "The effect of grandchildren on grandparental labor supply: Evidence from Europe," European Economic Review, Elsevier, vol. 137(C).
    9. Haiyue Yu & Jin Cao & Shulong Kang, 2018. "Fertility Cost, Intergenerational Labor Division, and Female Employment," CESifo Working Paper Series 7293, CESifo.
    10. Cristiano Antonelli, 2017. "The Engines of the Creative Response: Reactivity and Knowledge Governance," Economía: teoría y práctica, Universidad Autónoma Metropolitana, México, vol. 47(2), pages 9-30, Julio-Dic.
    11. Eiji Yamamura & Yoshiro Tsustsui, 2021. "The impact of closing schools on working from home during the COVID-19 pandemic: evidence using panel data from Japan," Review of Economics of the Household, Springer, vol. 19(1), pages 41-60, March.
    12. Jessica Zamberletti & Giulia Cavrini & Cecilia Tomassini, 2018. "Grandparents providing childcare in Italy," European Journal of Ageing, Springer, vol. 15(3), pages 265-275, September.
    13. 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.
    14. Francesca Zanasi & Bruno Arpino & Elena Pirani & Valeria Bordone, 2021. "Work histories and provision of grandparental childcare among Italian older women," Econometrics Working Papers Archive 2021_13, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    15. Ainoa Aparicio Fenoll, 2020. "The uneven impact of women's retirement on their daughters' employment," Review of Economics of the Household, Springer, vol. 18(3), pages 795-821, September.
    16. Zhang, Yiyun & Luh, Yir-Hueih, 2018. "Grandparents' health and family fertility choice: Evidence from Taiwan," China Economic Review, Elsevier, vol. 51(C), pages 294-308.

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    More about this item

    Keywords

    Grandparental child care; maternal employment; pension reform; retirement.;
    All these keywords.

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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