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Grandparenting and Labor Supply

  • Giulio Zanella

    (University of Bologna)

  • Peter Rupert

    (University of California, Santa Barbara)

We then consider a model that extends Cardia and Ng (2006) analysis of grandparenting and rationalizes this evidence with standard preferences and working-age grandparents. The key idea is that individuals value a particular good, "time spent with family children". This good can be "produced" when young but is unavailable when old, unless one becomes a grandparent. In a statndard model hours would roughly follow wages over the life cycle. We show that what changes over the life cycle is the opportunity to consume young children in one's family. The appearance of grandchildren increases the opportunity cost of market work, thus inducing individuals to work less.

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File URL: https://www.economicdynamics.org/meetpapers/2011/paper_404.pdf
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Paper provided by Society for Economic Dynamics in its series 2011 Meeting Papers with number 404.

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Date of creation: 2011
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Handle: RePEc:red:sed011:404
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