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Grandchildren and Their Grandparents' Labor Supply

Author

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  • Rupert, Peter

    (University of California, Santa Barbara)

  • Zanella, Giulio

    (University of Bologna)

Abstract

Working-age grandparents supply large amounts of child care, an observation that raises the question of how having grandchildren affects grandparents' own labor supply. Exploiting the unique genealogical design of the PSID and the random variation in the timing when the parents of first-born boys and girls become grandparents, we estimate a structural labor supply model and find a negative effect on employed grandmother's hours of work of about 30% that is concentrated near the bottom of the hours distribution, i.e., among women less attached to the labor market. Implications for the evaluation of child care and parental leave policies are discussed.

Suggested Citation

  • Rupert, Peter & Zanella, Giulio, 2017. "Grandchildren and Their Grandparents' Labor Supply," IZA Discussion Papers 11235, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp11235
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    3. Huamin Chai & Rui Fu & Peter C. Coyte, 2021. "Does Unpaid Caregiving Erode Working Hours Among Middle-Aged Chinese Adults?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(3), pages 977-999, October.
    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. Brunello, Giorgio & Rocco, Lorenzo, 2016. "Is Childcare Bad for the Mental Health of Grandparents? Evidence from SHARE," IZA Discussion Papers 10022, Institute of Labor Economics (IZA).
    6. Krolikowski, Pawel & Zabek, Mike & Coate, Patrick, 2020. "Parental proximity and earnings after job displacements," Labour Economics, Elsevier, vol. 65(C).
    7. Massimiliano Bratti & Tommaso Frattini & Francesco Scervini, 2018. "Grandparental availability for child care and maternal labor force participation: pension reform evidence from Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1239-1277, October.
    8. Daniela Boca & Daniela Piazzalunga & Chiara Pronzato, 2018. "The role of grandparenting in early childcare and child outcomes," Review of Economics of the Household, Springer, vol. 16(2), pages 477-512, June.
    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. Wang, Sophie Xuefei & Bansak, Cynthia, 2022. "Are Grandparents a Good Substitute for Parents as the Primary Caregiver? The Impact of Grandparents on Children's Academic Performance," GLO Discussion Paper Series 1100, Global Labor Organization (GLO).
    11. 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.
    12. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    13. 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.
    14. Mara Barschkett & C. Katharina Spiess & Elena Ziege, 2021. "Does Grandparenting Pay off for the Next Generations? Intergenerational Effects of Grandparental Care," SOEPpapers on Multidisciplinary Panel Data Research 1152, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Guo, Rufei & Li, Hongbin & Yi, Junjian & Zhang, Junsen, 2018. "Fertility, household structure, and parental labor supply: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 145-156.
    16. Ariane Ophir & Jessica Polos, 2022. "Care Life Expectancy: Gender and Unpaid Work in the Context of Population Aging," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(1), pages 197-227, February.
    17. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.
    18. Birgit Leimer & Reyn Joris van Ewijk, 2022. "Are Grandchildren Good for You? Well-Being and Health Effects of Becoming a Grandparent," Working Papers 2201, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.
    19. Francisco Cabrera-Herández & María Padilla-Romo, 2021. "Women as Caregivers: Full-time Schools and Grandmothers’ Labor Supply," Working Papers 2021-03, University of Tennessee, Department of Economics.
    20. María Padilla-Romo & Francisco Cabrera-Hernández, 2018. "The Effect of Children's Time in School on Mothers' Labor Supply: Evidence from Mexico's Full-Time Schools Program," Working Papers 2018-04, University of Tennessee, Department of Economics.
    21. María Padilla‐Romo & Francisco Cabrera‐Hernández, 2019. "Easing The Constraints Of Motherhood: The Effects Of All‐Day Schools On Mothers' Labor Supply," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 890-909, April.
    22. 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.
    23. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Does Grandparenting Pay off for the Next Generations? Intergenerational Effects of Grandparental Care," IZA Discussion Papers 14795, Institute of Labor Economics (IZA).
    24. Lin, Mengyun & Wang, Qing, 2019. "Center-based childcare expansion and grandparents' employment and well-being," Social Science & Medicine, Elsevier, vol. 240(C).

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    More about this item

    Keywords

    labor supply; grandparents; child care;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • 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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