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Golden Years? The Labor Market Effects of Caring for Grandchildren

Author

Listed:
  • Wang, Ying

    () (Impaq International)

  • Marcotte, Dave E.

    () (American University)

Abstract

The number of Americans raising grandchildren has been rising steadily. In this paper, we add to what is known about the implications of this trend by focusing on the economic effects of raising a grandchild. We make use of a unique data set compiled from the Panel Study of Income Dynamics along with its Parent Identification File. Using this nationally representative sample of 3,240 grandparents who are heads of households, we estimate the effect of taking in a grandchild on a grandparent’s labor force participation and hours worked. We estimate ordinary and two-stage models that distinguishing between grandparents living only with grandchildren (skipped generation families) and those who also have taken in their own children (three-generation families). The results suggest that caring for grandchildren leads to greater attachment to the labor force, especially in skipped-generation families, for grandfathers, and among married grandparents.

Suggested Citation

  • Wang, Ying & Marcotte, Dave E., 2007. "Golden Years? The Labor Market Effects of Caring for Grandchildren," IZA Discussion Papers 2629, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp2629
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    Cited by:

    1. Wolfgang Frimmel & Martin Halla & Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2017. "Grandmothers' Labor Supply," Economics working papers 2017-20, Department of Economics, Johannes Kepler University Linz, Austria.
    2. Emily E. Wiemers & Suzanne M. Bianchi, 2015. "Competing Demands from Aging Parents and Adult Children in Two Cohorts of American Women," Population and Development Review, The Population Council, Inc., vol. 41(1), pages 127-146, March.
    3. Janina Reinkowski, 2014. "Empirical Essays in the Economics of Ageing and the Economics of Innovation," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 53.
    4. Christine Ho, 2015. "Grandchild care, intergenerational transfers, and grandparents’ labor supply," Review of Economics of the Household, Springer, vol. 13(2), pages 359-384, June.
    5. Li-Jung Ku & Sally Stearns & Courtney Houtven & George Holmes, 2012. "The health effects of caregiving by grandparents in Taiwan: an instrumental variable estimation," Review of Economics of the Household, Springer, vol. 10(4), pages 521-540, December.
    6. Christine Ho, 2014. "Welfare-to-Work Reform and Intergenerational Support: Grandmothers’ Response to the 1996 PRWORA," Working Papers 12-2014, Singapore Management University, School of Economics.
    7. Robin Lumsdaine & Stephanie Vermeer, 2015. "Retirement Timing of Women and the Role of Care Responsibilities for Grandchildren," Demography, Springer;Population Association of America (PAA), vol. 52(2), pages 433-454, April.

    More about this item

    Keywords

    grandparents; child care; labor force participation; work hours; retirement;

    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
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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