UCL Department of Economics


CReAM Seminar: Han Ye (Mannheim)

05 June 2023, 4:00 pm–5:30 pm

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Spillover Effects of Old-Age Pension Across Generations: Family Labor Supply and Child Outcomes joint with Katja M. Kaufmann and Yasemin Özdemir

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Hyejin Ku

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).

Ricardo LT, Drayton House

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