Grandmothers' availability for child care has been shown to increase the labor force participation (LFP) and fertility of daughters. However, grandmothers' child care availability depends highly on their LFP. When grandmothers work, intergenerational income transfers to their daughters may increase at the expense of time transfers (through child care). Using a Two-stage Two-steps Least Squares estimation, we exploit changes in legal retirement ages in Italy to explore the relationship between mothers' LFP and daughters' LFP and fertility choices. We show that even though grandmothers who participate in the labor force provide less child care, their daughters are more likely to have children and less likely to participate in the labor force. This can be explained by the increase in family income as a result of mothers' LFP offsetting the influence of the reduction in child care.
Highlights
More people died from Covid in countries or states with higher rates of intergenerational co-residence.
The positive correlation persists even when controlling for demographic characteristics, economic factors, and anti-Covid measures.
The positive association between co-residence and fatalities is led by the US.
Intergenerational co-residence and Covid detected cases are also positively correlated.
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