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Do Downward Private Transfers Enhance Maternal Labor Supply? Evidence from around Europe

Author Info

  • Dimova, Ralitza

    ()

    (University of Manchester)

  • Wolff, François-Charles

    ()

    (University of Nantes)

Abstract

Drawing on a theoretical model of downward private transfers with endogenous labor supply and recursive econometric models based on 2317 mother-daughter pairs from the 2003 SHARE data on 10 European countries, we investigate the impact of private transfers on the career choices of transfer-receiving young mothers. For Europe as a whole, we find a strong positive impact of grandchild care on the labor force participation decision of the mother, but no clear impact of either grandchild care or monetary transfers on the mother’s degree of labor market involvement. The link between family transfers and labor supply exhibits an interesting pattern across institutional settings. Finally, while both recipients and donors with better endowments are more likely to participate in a monetary transaction, time transfers are such that mothers with lower level of human capital tend to assist the professional development of their better endowed daughters.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2469.

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Length: 33 pages
Date of creation: Nov 2006
Date of revision:
Publication status: published in: Journal of Population Economics, 2011, 24 (3), 911-933
Handle: RePEc:iza:izadps:dp2469
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Keywords: financial transfers; labor participation; grandchild care;

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Find related papers by JEL classification:
  • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
  • 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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Cited by:

  1. Janice Compton & Robert A. Pollak, 2011. "Family Proximity, Childcare, and Women's Labor Force Attachment," NBER Working Papers 17678, National Bureau of Economic Research, Inc.
  2. Karsten Hank, 2008. "Generationenbeziehungen im alternden Europa: Analysepotenziale und Befunde des Survey of Health, Ageing and Retirement in Europe," MEA discussion paper series 08161, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
  3. Bruno Arpino & Chiara Pronzato & Lara Tavares, 2014. "The Effect of Grandparental Support on Mothers’ Labour Market Participation: An Instrumental Variable Approach," European Journal of Population, Springer, vol. 30(4), pages 369-390, November.
  4. Alzúa, María Laura & Cruces, Guillermo & Ripani, Laura, 2012. "Welfare Programs and Labor Supply in Developing Countries: Experimental Evidence from Latin America," IZA Discussion Papers 6959, Institute for the Study of Labor (IZA).
  5. Pascal Belan & Pierre-Jean Messe & François-Charles Wolff, 2010. "Postponing retirement age and labor force participation : the role of family transfers," Discussion Papers (REL - Recherches Economiques de Louvain) 2010041, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Janina Reinkowski, 2014. "Empirical Essays in the Economics of Ageing and the Economics of Innovation," ifo Beiträge zur Wirtschaftsforschung, Ifo Institute for Economic Research at the University of Munich, number 53.
  7. Cobb-Clark, Deborah A. & Gorgens, Tue, 2012. "Parents' Economic Support of Young-Adult Children: Do Socioeconomic Circumstances Matter?," IZA Discussion Papers 6376, Institute for the Study of Labor (IZA).
  8. García-Morán, Eva & Kuehn, Zoe, 2013. "With strings attached: Grandparent-provided child care and female labor market outcomes," MPRA Paper 48953, University Library of Munich, Germany.
  9. García-Morán, Eva & Kuehn, Zoe, 2012. "With strings attached: Grandparent-provided child care, fertility, and female labor market outcomes," MPRA Paper 37001, University Library of Munich, Germany.
  10. P. Rupert & G. Zanella, 2014. "Grandchildren and Their Grandparents’ Labor Supply," Working Papers wp937, Dipartimento Scienze Economiche, Universita' di Bologna.
  11. Arnstein Aassve & Bruno Arpino & Alice Goisis, 2012. "Grandparenting and mothers’ labour force participation: A comparative analysis using the Generations and Gender Survey," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 27(3), pages 53-84, July.
  12. admin, clsrn, 2011. "The Mom Effect: Family Proximity and the Labour Force Status of Women in Canada," CLSSRN working papers clsrn_admin-2011-30, Vancouver School of Economics, revised 28 Nov 2011.
  13. Eva García-Morán & Zoë Kuehn, 2013. "With Strings Attached: Grandparent-Provided Child Care and Female Labor Market Outcomes," SOEPpapers on Multidisciplinary Panel Data Research 610, DIW Berlin, The German Socio-Economic Panel (SOEP).
  14. Janina Reinkowski, 2013. "Should We Care that They Care? Grandchild Care and Its Impact on Grandparent Health," Ifo Working Paper Series Ifo Working Paper No. 165, Ifo Institute for Economic Research at the University of Munich.
  15. Eva Garcia-Moran & Zoe Kuehn, 2012. "With Strings Attached: Grandparent-Provided Child care, Fertility, and Female Labor Market Outcomes," CEPRA working paper 1202, USI Università della Svizzera italiana.
  16. Battistin, Erich & De Nadai, Michele & Padula, Mario, 2014. "Roadblocks on the Road to Grandma's House: Fertility Consequences of Delayed Retirement," IZA Discussion Papers 8071, Institute for the Study of Labor (IZA).
  17. Arpino, Bruno & Pronzato, Chiara D. & Tavares, Lara P., 2012. "Mothers' Labour Market Participation: Do Grandparents Make It Easier?," IZA Discussion Papers 7065, Institute for the Study of Labor (IZA).

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