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

Katja Kaufmann, Yasemin Özdemir and Han Ye
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Yasemin Özdemir: University of Bayreuth

No 15388, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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).

Keywords: spillover effects; retirement; grandparental childcare; maternal labor supply; child development (search for similar items in EconPapers)
JEL-codes: D64 I38 J22 J26 (search for similar items in EconPapers)
Pages: 84 pages
Date: 2022-06
New Economics Papers: this item is included in nep-age, nep-dem, nep-eur, nep-hea and nep-lma
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Related works:
Working Paper: Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes (2024)
Working Paper: Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes (2022)
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