Grandchild care, intergenerational transfers, and grandparents’ labor supply
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One-fifth of children aged below five with employed mothers benefit from grandparent provided child care as their main source of daycare in the US. Using data from the health and retirement study, we investigate how grandchild care needs relate to intergenerational transfers of time and money and grandparents’ labor supply behavior. We find that grandparents with a new born grandchild are more likely to provide grandchild care while married grandparents are also more likely to be employed and provide financial help. Grandparents with grandchildren living close by provided higher time transfers while married grandmothers with resident grandchildren also worked longer hours.
KeywordsGrandchild care Intergenerational transfers Grandparents’ labor supply
JEL ClassificationsD13 J13 J14 J22
I would like to thank James Banks, Samuel Belinsky, Soshana Grossbard, Hilary Hoynes, Kathleen McGarry, Costas Meghir, Nicola Pavoni, Ian Preston, Ken Yamada, and two anonymous reviewers for insightful comments and suggestions. All mistakes remain my own.
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