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

Katja Kaufmann, Yasemin Özdemir () and Han Ye

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: We study the impact of grandparental retirement decisions on family members’ labor supply and child outcomes by exploiting a Dutch pension reform and a fuzzy Regression Discontinuity design. We find that a one-hour increase in grandmothers’ hours worked causes their adult daughters with young children to work 40 minutes less. Daughters without children, with older children and sons/daughters-in-law are not affected. Examining the reform impacts on grandchildren’s test scores, we find positive effects on children aged 4-7, who experienced a substitution from grandparental to maternal care. We also show negative effects for children aged 8-12, for whom grandparental childcare was substituted for by formal or no care.

Keywords: spillover effects; retirement; grandparental childcare; maternal labor supply; child development (search for similar items in EconPapers)
JEL-codes: D64 I38 J13 J22 J26 (search for similar items in EconPapers)
Pages: 84
Date: 2023-03, Revised 2024-06
New Economics Papers: this item is included in nep-age, nep-dem and nep-hea
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Related works:
Working Paper: Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes (2022)
Working Paper: Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2023_403v2

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