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Grandchild care and eldercare. A quid pro quo arrangement

Author

Listed:
  • Lefebvre, Mathieu

    (University of Strasbourg)

  • Pestieau, Pierre

    (Université catholique de Louvain, LIDAM/CORE, Belgium)

  • Schoenmaeckers, Jérôme

    (Université de Liège)

Abstract

The phenomenon of grandparents assuming the role of caretakers for their grandchildren is both substantial and on the rise, a trend partially attributed to mothers’ increasing participation in the workforce. While altruism is commonly believed to be the primary driver behind such caregiving, we propose to examine an additional motivation: the expectation among grandparents that they will receive care from their offspring in the event of their own incapacity. This paper aims to investigate this hypothesis from both theoretical and empirical perspectives. Initially, we construct a theoretical framework, delineating a Subgame Perfect Nash Equilibrium, wherein the grandparent first commits to caring for the grandchild, followed by the anticipation of receiving care from their adult child in scenarios of disability. Subsequently, we empirically test the feasibility of this model by analyzing data sourced from the Survey of Health, Ageing and Retirement in Europe (SHARE). Our results confirm that elderly who took care of their grandchildren receive more support from their children in the case of a loss of autonomy.

Suggested Citation

  • Lefebvre, Mathieu & Pestieau, Pierre & Schoenmaeckers, Jérôme, 2024. "Grandchild care and eldercare. A quid pro quo arrangement," LIDAM Discussion Papers CORE 2024014, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2024014
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    More about this item

    Keywords

    Long-term care ; Intergenerational transfers ; Informal care;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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