Grandchild care, intergenerational transfers, and grandparents’ labor supply
- 934 Downloads
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.
- Bianchi, S., Seltzer, J., Song, X., & Schoeni, R. (2012). Money and time transfers from parents to adult children in the United States: New evidence on between and within family differences from the June 2012 survey of consumers. Manuscript. Google Scholar
- Brown, M. (2005). Informal care and the division of end-of-life transfers. Journal of Human Resources, 41(1), 191–219.Google Scholar
- Compton, J., & Pollak, R. A. (2013). Family proximity, childcare and women’s labor force attachment. Journal of Urban Economics. 10.1016/j.jue.2013.03.00.
- Fuller-Thomson, E., & Minkler, M. (2000). The mental and physical health of grandmothers who are raising their grandchildren. Journal of Mental Health and Aging, 6, 311–323.Google Scholar
- Ho, C. (2012). Optimal disability insurance with informal child care. Centre for Silver Security WP CSS-WP-04-201.Google Scholar
- Ho, C. (2013). Welfare-to-work reform and intergenerational support: A look at elderly women’s response to the 1996 PRWORA. Manuscript.Google Scholar
- Ho, C., & Pavoni, N. (2012). The joint design of Social Security and unemployment insurance. Manuscript.Google Scholar
- Laughlin, L. (2010). Who’s minding the kids? Child care arrangements. US Census Bureau. Google Scholar
- Lei, X. (2008). Grandchild care, financial transfers and grandma’s labor market decisions. Manuscript.Google Scholar
- Leibowitz, A., Klerman, J. A., & Waite, L. J. (1992). Employment of new mothers and child care choice. Journal of Human Resources, 27(1), Special Issue on Child Care, 112–133.Google Scholar
- McGarry, K., & Schoeni, R. F. (1995). Transfer behavior in the health and retirement study: measurement and the distribution of resources within the family. Journal of Human Resources, 30, Special Issue on Health and Retirement Study, S184–S226.Google Scholar
- Minkler, M., & Fuller-Thomson, E. (2001). Physical and mental health status of American grandparents providing extensive child care to their grandchildren. Journal of the American Medical Women’s Association, 56(4), 199–205.Google Scholar
- Posadas, J., & Vidal-Fernández, M. (2012). Grandparent’s childcare and female labor force participation. IZA discussion paper no. 6398.Google Scholar
- Reinkowski, J. (2013). Should we care that they care? Grandchild care and its impact on grandparent health. Ifo working paper no. 165.Google Scholar
- Rosenzweig, M. R., & Wolpin, K. I. (1994). Parental and public transfers to young women and their children. American Economic Review, 84(5), 1195–1212.Google Scholar
- Soldo, B. J., & Hill, M. S. (1995). Family structure and transfer measures in the health and retirement study: Background and overview. Journal of Human Resources, 30, Special Issue on Health and Retirement Study, S108–S137.Google Scholar