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

Katja Kaufmann, Yasemin Özdemir and Han Ye

No 9813, CESifo Working Paper Series from CESifo

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 J13 J22 J26 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-age, nep-dem, nep-hea and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes (2024) Downloads
Working Paper: Spillover Effects of Old-Age Pension across Generations: Family Labor Supply and Child Outcomes (2022) Downloads
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