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Roadblocks on the Road to Grandma’s House: Fertility Consequences of Delayed Retirement

Author

Listed:
  • Erich Battistin

    (Queen Mary University of London, IRVAPP and IZA)

  • Michele De Nadai

    (University of New South Wales)

  • Mario Padula

    (Università della Svizzera italiana, IdEP, CSEF and CEPR)

Abstract

We investigate the role of grandparental childcare for fertility decisions of their offspring. Exploiting pension reforms in Italy, we argue that delayed retirement represents a negative shock to the supply of informal childcare for the next generation. We show that, when the maternal grandmother is not available, motherhood after age 30 is less likely. This effect persists as the woman ages, and parallels that on number of children. We argue that these are permanent changes to completed fertility for many cohorts in our data. Consistent with our interpretation, we show that results are limited to the most familistic close-knits where the role of grandparents is more important, and that are not the mechanical consequence of changes of living arrangements and labor supply. Given the Italian lowest low fertility, we conclude that pension reforms may have had unintended inter-generational effects.

Suggested Citation

  • Erich Battistin & Michele De Nadai & Mario Padula, 2015. "Roadblocks on the Road to Grandma’s House: Fertility Consequences of Delayed Retirement," Working Papers 748, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:748
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jhecon:v:58:y:2018:i:c:p:215-227 is not listed on IDEAS
    2. Luca Stella, 2014. "Living Arrangements in Europe: Whether and Why Paternal Retirement Matters," "Marco Fanno" Working Papers 0177, Dipartimento di Scienze Economiche "Marco Fanno".
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    7. Engl, Florian & Riedl, Arno & Weber, Roberto A., 2016. "Spillover Effects of Institutions on Cooperative Behavior, Preferences, and Beliefs," Research Memorandum 016, Maastricht University, Graduate School of Business and Economics (GSBE).
    8. Ciani, Emanuele, 2016. "Retirement, pension eligibility and home production," Labour Economics, Elsevier, vol. 38(C), pages 106-120.

    More about this item

    Keywords

    Fertility; Informal child care; Pension reforms;

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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