Arbeitspapier

Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes

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We study the impact of grandparental retirement decisions on family members' labor supply and child outcomes by exploiting a Dutch pension reform in a fuzzy Regression Discontinuity design. A one-hour increase in grandmothers' hours worked causes adult daughters with young children to work half an hour less. Daughters without children, with older children and sons/daughters-in-law are not affected. We show important long-run impacts on maternal labor supply and on the child penalty. Test score effects are positive for children aged 4-7 (substitution from grandparental to maternal care), and negative for children aged 11-12 (substitution from grandparental to formal childcare).

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 9813

Classification
Wirtschaft
Fertility; Family Planning; Child Care; Children; Youth
Time Allocation and Labor Supply
Retirement; Retirement Policies
Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
Altruism; Philanthropy; Intergenerational Transfers
Subject
spillover effects
retirement
grandparental childcare
maternal labor supply
child development

Event
Geistige Schöpfung
(who)
Kaufmann, Katja Maria
Özdemir, Yasemin
Ye, Han
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2022

Handle
Last update
10.03.2025, 11:42 AM CET

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Object type

  • Arbeitspapier

Associated

  • Kaufmann, Katja Maria
  • Özdemir, Yasemin
  • Ye, Han
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2022

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