Work

Grandchildren and work: labour supply responses in later life

Year: 2026

Type: article

Abstract: As populations age, many people become grandparents before retiring, complicating later-life labour supply. Using nationally representative Australian data and an instrumental variable strategy, we estimate the causal effect of grandparenthood on work. Grandparenthood reduces grandmothers’ participation in the labour force driven by the extensive margin adjustments, while grandfathers’ labour supply is largely unchanged. Subgroup estimates suggest possible education and attitude gradients, but do not establish differences between groups; estimates across area disadvantage are similar in magnitude. These results highlight the relevance of intergenerational family responsibilities for later-life employment, while the mechanisms and distribution of effects across groups remain uncertain.

Source: Review of Economics of the Household

DOI: 10.1007/s11150-026-09900-x

Authors: Kadir Atalay, Derek Chung, Stephen Whelan

Institution: The University of Sydney

Language: English

Topic: Retirement, Disability, and Employment

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,390