With strings attached: Grandparent-provided child care, fertility, and female labor market outcomes

Eva García-Morán and Zoe Kuehn

MPRA Paper from University Library of Munich, Germany

Abstract: Grandparents are regular providers of free child care. Similar to any other form of child care, availability of grandparent-provided child care affects fertility and labor market decisions of women positively. We find that women in Germany, residing close to parents or in-laws are more likely to have children and that as mothers they are more likely to hold a regular part-or fulltime job. However, different from any other type of child care, for individuals to enjoy grandparent-provided child care on a regular basis, residence choices must coincide with those of parents or in-laws. Thus while living close provides access to free child care, it imposes costly spatial restrictions. We find that hourly wages of mothers residing close to parents or in-laws are lower compared to those residing further away, and having relatives taking care of ones' children increases the probability of having to commute. We build a general equilibrium model of residence choice, fertility decisions, and female labor force participation that can account for the relationships between grandparent-provided child care, fertility and labor market outcomes. We simulate our model to analyze how women's decisions regarding residence, fertility, and labor force participation change under different family policies.

Keywords: informal child care; fertility; labor force participation; spatial restrictions; regional labor markets (search for similar items in EconPapers)
JEL-codes: H42 J13 J61 R23 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-dem, nep-eur and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://mpra.ub.uni-muenchen.de/38393/1/MPRA_paper_38393.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/42773/1/MPRA_paper_42773.pdf revised version (application/pdf)

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