Labor Market Consequences of Grandparenthood
Won-Tak Joo1, Felix Elwert2, Martin D Munk3,4
1University of Florida.
Summary
Becoming a grandparent impacts labor supply and earnings, particularly for grandmothers. Grandparenthood reduces work hours and income, especially following a daughter
Area of Science:
- Economics
- Sociology
- Demography
Background:
- The labor market effects of grandparenthood are not well understood.
- Multigenerational impacts of parenthood require further investigation.
Purpose of the Study:
- To estimate the labor supply and earnings consequences of becoming a grandparent.
- To analyze how gender and socioeconomic factors influence these effects.
Main Methods:
- Utilized detailed multigenerational data from Danish population registers.
- Employed statistical methods to estimate the impact of grandparenthood on labor market outcomes.
Main Results:
- Grandparenthood significantly reduces work hours and income, with effects more pronounced for grandmothers.
- The impact is amplified when a daughter gives birth as a teenager, especially for low-income grandmothers.
- Grandfathers experience a smaller reduction in work hours but not income from a daughter's teen birth.
Conclusions:
- Childbearing has significant multigenerational consequences on labor markets.
- These consequences are shaped by gendered caregiving roles and socioeconomic status.
- The findings highlight the complex interplay between family structure and economic participation.
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