Work

Elderly labor supply, endogenous grandparental childcare, and fertility in an OLG model

Year: 2025

Type: article

Abstract: This paper explores how grandparental childcare influences fertility decisions, elderly labor supply, and economic development. We model the time elderly individuals allocate between work and caring for grandchildren. In high-income countries, higher wages lead to increased investments in children’s education and human capital. Interestingly, the decision to work in old age does not depend on economic development but on wage dynamics. Specifically, when the effective wage grows rapidly, grandparents are more likely to work, even while caring for grandchildren. These findings highlight the importance of intergenerational time transfers in shaping economic outcomes. Future research could explore the long-term effects of aging populations on labor markets and family dynamics.

Source: Economic Modelling

DOI: 10.1016/j.econmod.2025.107102

Authors: Mauro Maria Baldi, Raffaella Coppier, Elisabetta Michetti

Institution: University of Macerata

Language: English

Topic: Intergenerational Family Dynamics and Caregiving

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,660