Grandmothers’ Labor Supply

Wolfgang Frimmel, Martin Halla, Bernhard Schmidpeter, Rudolf Winter-Ebmer

Publication: Scientific journalJournal articlepeer-review


We use high-quality administrative data from Austria to estimate the effect of grandmotherhood on the labor supply decision of older workers. Assuming that grandmothers cannot predict the exact date of conception of their grandchild, we identify the effect of the first grandchild on employment. Our timing-of-events approach shows that a first grandchild increases the probability of leaving the labor market by 9 percent. This effect is stronger when informal childcare is more valuable and when grandmothers live close to the grandchild. To assess the effect of an additional grandchild, we also use twin births among the first grandchild as instruments.
Original languageEnglish
Pages (from-to)1645-1689
JournalJournal of Human Resources
Issue number5
Publication statusPublished - 2022
Externally publishedYes

Cite this