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Grandparents' Childcare and Female Labor Force Participation

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  • Posadas, Josefina

    (World Bank)

  • Vidal-Fernandez, Marian

    (University of Sydney)

Abstract

In the U.S., grandparents look after one in five preschool children of employed women. Does this source of informal childcare increase female labor force participation and if so, up to what extent? The main challenge to answer this question is that a positive relationship between grandparents’ childcare and female labor force participation might not be causal. We use the maternal grandmother’s death as an instrument of grandparents’ childcare to measure the effect of grandparents’ childcare on maternal labor force participation (MLFP). We compare OLS and IV estimates and find that grandparents’ childcare increases MLFP by 15 percentage points on average. We argue that most of the effect is driven by families from socio-economically disadvantaged backgrounds.

Suggested Citation

  • Posadas, Josefina & Vidal-Fernandez, Marian, 2012. "Grandparents' Childcare and Female Labor Force Participation," IZA Discussion Papers 6398, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6398
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    References listed on IDEAS

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    1. Daniela Del Boca, 2002. "The effect of child care and part time opportunities on participation and fertility decisions in Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(3), pages 549-573.
    2. Michael Baker & Jonathan Gruber & Kevin Milligan, 2008. "Universal Child Care, Maternal Labor Supply, and Family Well-Being," Journal of Political Economy, University of Chicago Press, vol. 116(4), pages 709-745, August.
    3. Elizabeth U. Cascio, 2009. "Maternal Labor Supply and the Introduction of Kindergartens into American Public Schools," Journal of Human Resources, University of Wisconsin Press, vol. 44(1).
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    Cited by:

    1. Eiji Yamamura, 2021. "View about consumption tax and grandchildren," Papers 2102.04658, arXiv.org.
    2. Xiaohui Zhong & Minggang Peng, 2020. "The Grandmothers’ Farewell to Childcare Provision under China’s Two-Child Policy: Evidence from Guangzhou Middle-Class Families," Social Inclusion, Cogitatio Press, vol. 8(2), pages 36-46.
    3. Zhengyu Cai & Heather M. Stephens & John V. Winters, 2019. "Motherhood, migration, and self-employment of college graduates," Small Business Economics, Springer, vol. 53(3), pages 611-629, October.
    4. Nataliya Kusa, 2018. "Should intra-familial time transfers be compensated financially?," MAGKS Papers on Economics 201802, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Olivetti, Claudia & Paserman, M. Daniele & Salisbury, Laura, 2018. "Three-generation mobility in the United States, 1850–1940: The role of maternal and paternal grandparents," Explorations in Economic History, Elsevier, vol. 70(C), pages 73-90.
    6. Wolfgang Frimmel & Martin Halla & Bernhard Schmidpeter & Rudolf Winter-Ebmer, 2022. "Grandmothers’ Labor Supply," Journal of Human Resources, University of Wisconsin Press, vol. 57(5), pages 1645-1689.
    7. Gunatilaka, Ramani., 2013. "To work or not to work? : Factors holding women back from market work in Sri Lanka," ILO Working Papers 994838403402676, International Labour Organization.
    8. Lusi Liao & Sasiwimon Warunsiri Paweenawat, 2022. "Alternative boomerang kids, intergenerational co-residence, and maternal labor supply," Review of Economics of the Household, Springer, vol. 20(2), pages 609-634, June.
    9. Janina Reinkowski, 2014. "Empirical Essays in the Economics of Ageing and the Economics of Innovation," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 53.
    10. Rupert, Peter & Zanella, Giulio, 2018. "Grandchildren and their grandparents' labor supply," Journal of Public Economics, Elsevier, vol. 159(C), pages 89-103.
    11. Massimiliano Bratti & Tommaso Frattini & Francesco Scervini, 2018. "Grandparental availability for child care and maternal labor force participation: pension reform evidence from Italy," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(4), pages 1239-1277, October.
    12. Eiji Yamamura & Giorgio Brunello, 2023. "Effect of grandchildren on the happiness of grandparents: Does the grandparent's child's gender matter?," Asian Economic Journal, East Asian Economic Association, vol. 37(2), pages 149-163, June.
    13. Janice Compton, 2015. "Family proximity and the labor force status of women in Canada," Review of Economics of the Household, Springer, vol. 13(2), pages 323-358, June.
    14. Iva Trako, 2016. "Fertility and Parental Labor-Force Participation: New Evidence from a Developing Country in the Balkans," Working Papers halshs-01361443, HAL.
    15. Christine Ho, 2015. "Grandchild care, intergenerational transfers, and grandparents’ labor supply," Review of Economics of the Household, Springer, vol. 13(2), pages 359-384, June.
    16. Giorgio Brunello & Lorenzo Rocco, 2019. "Grandparents in the blues. The effect of childcare on grandparents’ depression," Review of Economics of the Household, Springer, vol. 17(2), pages 587-613, June.
    17. repec:ilo:ilowps:483840 is not listed on IDEAS
    18. Josefina Posadas, 2012. "Grandparents as Child Care Providers : Factors to Consider When Designing Child Care Policies," World Bank Publications - Reports 17056, The World Bank Group.
    19. Jorge Augusto Paz, 2019. "Envejecimiento demográfico y oferta laboral de hombres y mujeres," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 34(2), pages 53-80, October.
    20. Ke Shen & Ping Yan & Yi Zeng, 2016. "Coresidence with elderly parents and female labor supply in China," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 35(23), pages 645-670.
    21. Taryn W. Morrissey, 2017. "Child care and parent labor force participation: a review of the research literature," Review of Economics of the Household, Springer, vol. 15(1), pages 1-24, March.
    22. Michelle Brady, 2016. "Gluing, catching and connecting: how informal childcare strengthens single mothers’ employment trajectories," Work, Employment & Society, British Sociological Association, vol. 30(5), pages 821-837, October.
    23. García-Morán, Eva & Kuehn, Zoe, 2013. "With strings attached: Grandparent-provided child care and female labor market outcomes," MPRA Paper 48953, University Library of Munich, Germany.

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    More about this item

    Keywords

    childcare; maternal labor force participation; grandparents; NLSY;
    All these keywords.

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty

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