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Grandparenting and Labor Supply

Author

Listed:
  • Giulio Zanella

    (University of Bologna)

  • Peter Rupert

    (University of California, Santa Barbara)

Abstract

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.

Suggested Citation

  • Giulio Zanella & Peter Rupert, 2011. "Grandparenting and Labor Supply," 2011 Meeting Papers 404, Society for Economic Dynamics.
    • Handle: RePEc:red:sed011:404
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    Cited by:

    1. Janina Reinkowski, 2013. "Should We Care that They Care? Grandchild Care and Its Impact on Grandparent Health," ifo Working Paper Series 165, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    2. Josefina Posadas, 2012. "Grandparents as Child Care Providers : Factors to Consider When Designing Child Care Policies," World Bank Publications - Reports 17056, The World Bank Group.
    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.

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