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Retirement, intergenerational time transfers and fertility

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  • Eibich, Peter
  • Siedler, Thomas

Abstract

Retirement increases the amount of leisure time. Retired parents might choose to invest some of their time into their adult children, e.g. by providing childcare. Such intergenerational time transfers can have important implications for retirement and family policies. This paper estimates the effects of parental retirement on their adult children’s fertility and labor supply. We use a representative household panel dataset from Germany to link observations on parents and adult children, and we exploit eligibility ages for early retirement using a regression discontinuity design for identification. The results show that early parental retirement induces a significant and considerable increase in (adult) children’s fertility. It also decreases labor supply of daughters. The analysis of time use data shows that retired parents provide childcare and assist their children with domestic duties. The findings suggest that early retirement policies can have important spillover effects on younger generations.

Suggested Citation

  • Eibich, Peter & Siedler, Thomas, 2016. "Retirement, intergenerational time transfers and fertility," VfS Annual Conference 2016 (Augsburg): Demographic Change 145746, Verein für Socialpolitik / German Economic Association.
  • Handle: RePEc:zbw:vfsc16:145746
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    Cited by:

    1. Peter Eibich & Xianhua Zai, 2022. "Are the grandparents alright? The health consequences of grandparental childcare provision," MPIDR Working Papers WP-2022-023, Max Planck Institute for Demographic Research, Rostock, Germany.
    2. Wolfgang Frimmel & Martin Halla & Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2022. "Grandmothers’ Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1645-1689.
    3. Kaufmann, Katja Maria & Özdemir, Yasemin & Ye, Han, 2022. "Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes," IZA Discussion Papers 15388, Institute of Labor Economics (IZA).
    4. Zhu, Penghu & Lin, Boqiang, 2022. "Do the elderly consume more energy? Evidence from the retirement policy in urban China," Energy Policy, Elsevier, vol. 165(C).
    5. Zhuang Hao & Huihui Cheng & Till Bärnighausen & Simiao Chen, 2024. "The effects of parental retirement on adult children's health: Evidence from China," Health Economics, John Wiley & Sons, Ltd., vol. 33(1), pages 12-20, January.
    6. Francesco C. Billari & Osea Giuntella & Luca Stella, 2019. "Does broadband Internet affect fertility?," Population Studies, Taylor & Francis Journals, vol. 73(3), pages 297-316, September.
    7. Monica Harber Carney, 2024. "Trade-offs in intergenerational family care provision," Review of Economics of the Household, Springer, vol. 22(2), pages 563-593, June.
    8. Simiao Chen & Zhangfeng Jin & Klaus Prettner, 2023. "Can I live with you after I retire? Retirement, old age support and internal migration in a developing country," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 964-988, August.
    9. Ilciukas, Julius, 2023. "Fertility and parental retirement," Journal of Public Economics, Elsevier, vol. 226(C).
    10. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    11. Zhu, Rong, 2021. "Retirement and voluntary work provision: Evidence from the Australian Age Pension reform," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 674-690.
    12. Eibich, Peter & Lorenti, Angelo & Mosca, Irene, 2022. "Does retirement affect voluntary work provision? Evidence from Europe and the U.S," Labour Economics, Elsevier, vol. 76(C).
    13. Edoardo Frattola, 2023. "Parental retirement and fertility decisions across family policy regimes," Temi di discussione (Economic working papers) 1417, Bank of Italy, Economic Research and International Relations Area.
    14. Wu, Qi & Gao, Xin, 2020. "The Effects of Parental Retirement on Adult Children’s Labor Supply: Evidence From China," MPRA Paper 103914, University Library of Munich, Germany.
    15. Felix Glaser & Rene Wiesinger, 2024. "Life After Loss: The Causal Effect of Parental Death on Daughters' Fertility," Economics working papers 2024-01, Department of Economics, Johannes Kepler University Linz, Austria.
    16. Barschkett, Mara & Spieß, C. Katharina & Ziege, Elena, 2021. "Intergenerational Effects of Grandparental Care on Children and Parents," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242397, Verein für Socialpolitik / German Economic Association.
    17. Julius Ilciukas, 2022. "Fertility and Parental Retirement," Tinbergen Institute Discussion Papers 22-021/V, Tinbergen Institute.

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    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • 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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