Template-Type: ReDIF-Paper 1.0
Title: Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes
Author-Name: Katja M. Kaufmann
Author-Email: katja.kaufmann@uni-bayreuth.de
Author-Name: Yasemin Özdemir
Author-Email: yasemin.oezdemir@uni-bayreuth.de
Author-Name: Han Ye
Author-Email: han.ye@uni-mannheim.de
Classification-JEL: J13, J22, J26, I38, D64
Keywords: spillover effects, retirement, grandparental childcare, maternal labor supply, child development

Abstract: We study the impact of grandparental retirement decisions on family members’ labor supply
and child outcomes by exploiting a Dutch pension reform and a fuzzy Regression Discontinuity
design. We find that a one-hour increase in grandmothers’ hours worked causes their adult
daughters with young children to work 40 minutes less. Daughters without children, with
older children and sons/daughters-in-law are not affected. Examining the reform impacts on
grandchildren’s test scores, we find positive effects on children aged 4-7, who experienced a
substitution from grandparental to maternal care. We also show negative effects for children
aged 8-12, for whom grandparental childcare was substituted for by formal or no care.

Note: 
Length: 84
Creation-Date: 2023-03
Revision-Date: 2024-06
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp403
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2023_403v2