Working Paper: CEPR ID: DP9945
Authors: Erich Battistin; Michele De Nadai; Mario Padula
Abstract: We investigate the role of grandparental childcare for fertility decisions of their offspring. Exploiting pension reforms in Italy, we argue that delayed retirement means a negative shock to the supply of informal childcare for the next generation. We show that one additional grandparent available in the early child-bearing years increases by 5% the number of children. Effects are limited to the most familistic close-knits, and are not the mechanical consequence of changes in living arrangements, investment in education or labor supply. Given the Italian lowest low fertility, we conclude that pension reforms may have had unintended inter-generational effects.
Keywords: fertility; informal child care; pension reforms
JEL Codes: H42; J08; J13
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Pension reforms in Italy during the 1990s (H55) | Availability of grandparental childcare (J13) |
| Availability of grandparental childcare (J13) | Number of children (J13) |
| Pension reforms in Italy during the 1990s (H55) | Number of children (J13) |
| Maternal grandparents availability (J12) | Number of children (J13) |
| Grandparental availability (J12) | Fertility decisions (J13) |
| Fertility decisions (J13) | Labor market participation (J29) |