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Grand-parenthood and retirement

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  • Malisa, Amedeus

Abstract

This paper uses Swedish administrative data to examine the impact of grandparenthood on retirement behaviour. For causal identification, I exploit conditionally random variation in the births of first grandchildren using an event study design. The results show a significant increase in the retirement probability for grandmothers and grandfathers when the first grandchild is born, with no significant differences between them. The effects of the arrival of the grandchild on retirement increase over time after the grandchild is born. The incremental effects are larger among grandparents in the upper half of the earnings distribution than among their counterparts. The findings suggest that grandparenthood makes grandfathers and grandmothers less elastic to financial incentives and other regulations that also promote longer working lives in a country with generous family policies, such as Sweden.

Suggested Citation

  • Malisa, Amedeus, 2024. "Grand-parenthood and retirement," Labour Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:labeco:v:90:y:2024:i:c:s0927537124000423
    DOI: 10.1016/j.labeco.2024.102547
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    More about this item

    Keywords

    Grandparents; Retirement decision; Grandchildren; Event study;
    All these keywords.

    JEL classification:

    • D19 - Microeconomics - - Household Behavior - - - Other
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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