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Grandmothers' labor supply

Author

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  • Frimmel, Wolfgang
  • Halla, Martin
  • Schmidpeter, Bernhard
  • Winter-Ebmer, Rudolf

Abstract

The labor supply effects of becoming a grandmother are not well established in the empirical literature. We estimate the effect of becoming a grandmother on the labor supply decision of older workers. Under the assumption that grandmothers cannot predict the exact date of conception of their grandchild, we identify the effect of the first grandchild on employment (extensive margin). Our Timing-of-Events approach shows that having a first grandchild increases the probability of leaving prematurely the labor market. This effect is stronger when informal child care is more valuable to the mother. To estimate the effect of an additional grandchild (intensive margin), we assume that the incidence of a twin birth among the second generation is not correlated with unobserved determinants of the grandmother's labor supply (first generation). Our respective 2SLS estimation shows a significant effect of further grandchildren. Our results highlight the important in uence of the extended family on the decisions of older workers and point to mediating effects of different institutional settings.

Suggested Citation

  • Frimmel, Wolfgang & Halla, Martin & Schmidpeter, Bernhard & Winter-Ebmer, Rudolf, 2017. "Grandmothers' labor supply," ISER Working Paper Series 2017-11, Institute for Social and Economic Research.
  • Handle: RePEc:ese:iserwp:2017-11
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    1. repec:eee:pubeco:v:159:y:2018:i:c:p:89-103 is not listed on IDEAS
    2. Rupert, Peter & Zanella, Giulio, 2018. "Grandchildren and their grandparents' labor supply," Journal of Public Economics, Elsevier, vol. 159(C), pages 89-103.

    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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