Labor Market Consequences of Grandparenthood.

Abstract

Little is known about the labor market consequences of becoming a grandparent. We estimate grandparenthood effects on labor supply and earnings using detailed multigenerational data from Danish population registers. Results show that the consequences of grandparenthood are unequally distributed and starkly patterned. Becoming a grandparent reduces hours worked and income, especially for grandmothers, more so when the grandchild is born to a daughter, and most when the grandmother's daughter gives birth as a teenager. Grandfathers also experience a reduction in hours worked (but not income) from their daughter's teen birth, but the reduction is much smaller than among grandmothers. The effects of a daughter's teen birth are further amplified for low-income grandmothers. Our results imply that childbearing has multigenerational consequences that are structured by gendered caregiving, the caregiving needs of the parent generation, and the delegating capacity of the grandparent generation.