Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes
84 Pages Posted: 28 Jun 2022
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
JEL Classification: 13, J22, J26, I38, D64
Suggested Citation: Suggested Citation