Data and Code for 'Grandmothers’ Labor Supply'

We provide the data and code (in Matlab/Stata) for the project 'Grandmothers' Labor Supply'.<br><br>The labor supply effects of becoming a grandmother are not well established in the empirical literature. We use high-quality administrative data from Austria to estimate the effect of grandmotherhood on the labor supply decision of older workers. Under the assumption that grandmothers cannot predict the exact date of conception of their grand-child, we identify the effect of the first grandchild on employment (extensive margin). Our Timing-of-Events approach shows that having a first grandchild increases the probability of leaving the labor market by 9 percent. This effect is stronger when informal childcare is more valuable to the mother, and when grandmothers live close to the grandchild. To assess the effect of an additional grandchild (intensive margin), we estimate the reduced-form effect of a twin-birth among the first grandchild on grandmothers’ labor supply. Our estimations show a significant effect of a further grandchild. Our results highlight the important influence of the extended family on the decisions of older workers and point to heterogeneity across institutional settings and families.<br>