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The Baby Boom, Baby Busts, and Grandmothers

  • Orman, Cuneyt
  • Goksel, Turkmen
  • Gurdal, Mehmet Y

Studies in family economics and anthropology suggest that grandmothers are a highly valuable source of childcare assistance. As such, availability of grandmothers affects the cost of having children, and hence fertility decisions of young parents. In this paper, we develop a simple model to assess the fertility implications of the fluctuations in both output (as argued by demographers) and grandmother-availability induced child-care costs over the period 1920-1970. Model does a good job of mimicking the bust-boom-bust pattern during this period. When the child-care cost channel is shut down, the model’s performance weakens significantly; in particular, it fails to capture the bust in the 1960’s altogether.

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File URL: https://mpra.ub.uni-muenchen.de/28782/1/MPRA_paper_28782.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 28782.

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Date of creation: Jan 2011
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Handle: RePEc:pra:mprapa:28782
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  1. Rachel Connelly, 1992. "Self-employment and providing child care," Demography, Springer;Population Association of America (PAA), vol. 29(1), pages 17-29, February.
  2. Gronau, Reuben, 1973. "The Intrafamily Allocation of Time: The Value of the Housewives' Time," American Economic Review, American Economic Association, vol. 63(4), pages 634-51, September.
  3. David Blau & Philip Robins, 1991. "Child care demand and labor supply of young mothers over time," Demography, Springer;Population Association of America (PAA), vol. 28(3), pages 333-351, August.
  4. Arleen Leibowitz & Jacob Alex Klerman & Linda J. Waite, 1992. "Employment of New Mothers and Child Care Choice: Differences by Children's Age," Journal of Human Resources, University of Wisconsin Press, vol. 27(1), pages 112-133.
  5. Galor, Oded & Weil, David, 1995. "The Gender Gap, Fertility and Growth," CEPR Discussion Papers 1157, C.E.P.R. Discussion Papers.
  6. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
  7. John W. Kendrick, 1961. "Productivity Trends in the United States," NBER Books, National Bureau of Economic Research, Inc, number kend61-1.
  8. Larry E. Jones & Alice Schoonbroodt & Michèle Tertilt, 2008. "Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?," NBER Working Papers 14266, National Bureau of Economic Research, Inc.
  9. Matthias Doepke & Moshe Hazan & Yishay Maoz, 2006. "The Baby Boom and World War II: The Role of Labor Market Experience," 2006 Meeting Papers 216, Society for Economic Dynamics.
  10. John W. Kendrick, 1973. "Postwar Productivity Trends in the United States, 1948–1969," NBER Books, National Bureau of Economic Research, Inc, number kend73-1.
  11. Yasuoka, Masaya & Miyake, Atsushi, 2010. "Change in the transition of the fertility rate," Economics Letters, Elsevier, vol. 106(2), pages 78-80, February.
  12. Karen Mason & Karen Kuhlthau, 1992. "The perceived impact of child care costs on women’s labor supply and fertility," Demography, Springer;Population Association of America (PAA), vol. 29(4), pages 523-543, November.
  13. Zimmerman, David J, 1992. "Regression toward Mediocrity in Economic Stature," American Economic Review, American Economic Association, vol. 82(3), pages 409-29, June.
  14. Daniela Del Boca & Marilena Locatelli & Daniela Vuri, 2005. "Child-Care Choices by Working Mothers: The Case of Italy," Review of Economics of the Household, Springer, vol. 3(4), pages 453-477, December.
  15. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
  16. Jeremy Greenwood & Ananth Seshadri & Guillaume Vandenbroucke, 2005. "The Baby Boom and Baby Bust," American Economic Review, American Economic Association, vol. 95(1), pages 183-207, March.
  17. Larry E. Jones & Alice Schoonbroodt, 2010. "Baby Busts and Baby Booms: The Fertility Response to Shocks in Dynastic Models," NBER Working Papers 16596, National Bureau of Economic Research, Inc.
  18. Edwin van Gameren & Ingrid Ooms, 2009. "Childcare and labor force participation in the Netherlands: the importance of attitudes and opinions," Review of Economics of the Household, Springer, vol. 7(4), pages 395-421, December.
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