DP9945 Roadblocks on the Road to Grandma's House: Fertility Consequences of Delayed Retirement
|Author(s):||Erich Battistin, Michele De Nadai, Mario Padula|
|Publication Date:||April 2014|
|Keyword(s):||Fertility, Informal Child Care, Pension Reforms|
|JEL(s):||H42, J08, J13|
|Programme Areas:||Labour Economics, Public Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9945|
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.