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- (2018) procedure. We show the estimates and optimal bandwidths for both linear and quadratic specifications. Notice that the estimated impact on the total monthly hours worked is around-0.65 hours using a bandwidth of 7.25, which is higher than the baseline result. Therefore, if anything, our baseline result is rather conservative. We show results for a bandwidth of 8 to avoid switching between different bandwidths (and thus samples) for different outcomes and for different subgroups.
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- (2018) procedure). Columns 4 and 5 show local linear regressions with a bandwidth of 6 and 12 months, respectively. Sample means at the cutoff (measured in the three months before the cutoff) are reported in Column 6. All outcomes are measured when the grandmothers are between ages 60 and 64. Robust standard errors clustered at grandmothers’ level are in parentheses. *** p<0.01, ** p<0.05, * p<0.1. Source: Authors’ calculations from the CBS data.
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- (a) Total hours worked by grandmothers (first-stage) (b) Total hours worked by mothers (reduced-form) Notes: Panel (a) of Figure 1 shows the scatter bin plot of grandmother’s total monthly hours worked as a function of distance to the cutoff, which is grandmothers’ birth month being January 1950. Panel (b) of Figure 1 shows the scatter bin plots of mother’s labor supply as a function of distance to the cutoff, which is grandmothers’ birth month being January 1950. The solid lines are the linear fitted lines. The shaded areas indicate the 95 percent confidence interval.
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- 4According to the overview of teaching hours on the official Dutch government website, which provides information on Dutch central government policy, pupils must be taught at least 3,520 hours in the first four school years (lower secondary) compared to 3,760 hours in the last four school years (senior years). availability does not represent a constraint for us, since our main sample period is between 2009 and 2015, when the grandparents born around January 1950 were between ages 60 and 64.
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- ABP Flexible Pension Scheme in July 2005. More generally, the reform bill no. 29760 includes a clause to adjust fiscal policy VUT and prepension (Wet voor aanpassing fiscal behandeling VUT and pre-pension) and is sometimes referred to as the 56-plus scheme (de 56-plusregeling). People, who were 55 years or older before January 1, 2005 (i.e. born before 1950) are not affected by the reform, while for people who turned 55 since January 1, 2005 (i.e. who were born since January 1, 1950) tax benefits for early retirement schemes were eliminated.
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Aizer, Anna, “Home alone: Supervision after school and child behavior,” Journal of Public Economics, 2004, 88 (9-10), 1835–1848.
- All individuals in our sample were eligible to participate in the life course savings program, which means both the grandmothers born before 1950 and since 1950 can use this new tax-facilitated saving scheme. However, individuals who were at least 50 years old but not yet 55 on 1 January 2005 (born since 1950) could save more than 12% per year. The policy intention was to provide a slight advantage for people aged 50 to 55 in 2005 to save quicker. This favorable treatment might wane the reform-induced rise in grandmother’s labor supply because it was perceived as a way out of the labor market for the ones affected by the 2006 reform. However, we are not worried about the LCS plan as a confounding factor. First, both treated and control can use this new tax-facilitated saving scheme. If anything, the availability of the LCS plan makes our first stage estimates smaller. Moreover, in practice, only some high-wage workers manage to retire early using the LCS plan.
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- Blue dots document women’s and the black triangles indicate men’s monthly labor income. Treated refers to women/ men (i.e., adult daughters/ sons in our analysis) with a grandmother born after and including January 1950 (using a bandwidth of 7 months). Event time 0 marks the birth of the first child. The shaded area between event times 4 and 7 indicates the main reform spillover window on the second generation. The value at t = -1 is normalized to zero so that coefficients measure the impact of the first child relative to the year before birth. Different tones of shaded areas indicate the 90 and 95 percent confidence intervals. The long-run relative child penalty after 7 years (i.e., relative loss women experience compared to men) is reported below each sub-graph.
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Carneiro, Pedro, Costas Meghir, and Matthias Parey, “Maternal education, home environments, and the development of children and adolescents,” Journal of the European Economic Association, 2013, 11 (suppl_1), 123–160.
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- D Estimation of Dynamic Effects on Mothers’ Labor Supply and Child Penalty We build on the framework developed by Kleven et al. (2019a) and estimate the following regression separately by gender (?) and treatment status (?): ? ?? ??? = ∑︁ ?≠−1 ? ?? ? ?[? = ?] + ∑︁ ? ? ?? ? ?[??? = ?] + ∑︁ ? ? ?? ? ?[???? = ?] + ? ?? ??? (A1) Hereby ? ?? ??? denotes the labor market outcome of individual ?, in calendar year ?, at event time ?.
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- Dahl, Gordon B, Katrine V Løken, Magne Mogstad, and Kari Vea Salvanes, “What is the case for paid maternity leave?,” Review of Economics and Statistics, 2016, 98 (4), 655–670.
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- Every year, a longitudinal survey is fielded in the panel, covering many domains, including health, work, education, income, housing, time use, political views, values, and personality. More information about the LISS panel can be found at: www.lissdata.nl We use the first wave collected in 2008 and restrict our focus on parents (i.e., individuals with children) whose own mother (i.e., the grandmother) is still alive. Parents are asked about child care arrangements separately for their children below age four and children aged 4-12 who do not attend secondary school yet. Parents of children were asked the following four questions based on which we calculate child care statistics.
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Fitzpatrick, Maria Donovan, “Preschoolers enrolled and mothers at work? The effects of universal prekindergarten,” Journal of Labor Economics, 2010, 28 (1), 51–85.
- For details see: Official documentation of gbaadresobjectbus vslgwbtab This file includes all objects from the Key Register of Addresses and Buildings (BAG) and all objects that were in the SSB before 1-1-2012 (historical objects). Information on the municipality in which the object is placed is provided on an annual basis.
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- For details see: Official documentation of gbahuishoudenbus gbaadresobjectbus This file contains encrypted information on the addresses of persons who are or have been registered since 1 January 1995.
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- For details see: Official documentation of gbaoverlijdentab gbahuishoudenbus This file provides information on all individuals who appear in the Basic Registration of Persons (BRP) from 1 October 1994. Information includes their position in the household and details about the family to which they belong/ belonged, such as family composition, number of children, marital status. The data is provided in the form of spells indicating each household’s start and end date and individuals belonging to the family.
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- For details see: Official documentation of integraal persoonlijk inkomen CITOtab This file contains information on the performance on a high-stake test taken at the end of primary school, the Cito Primary School Final Test, used to assign children to different tracks in secondary school. Until the school year of 2013/14, only the Cito Primary School Final Test was provided.
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- For details see: Official documentation of kindoudertab gbaoverlijdentab This file contains the date of death of all persons who have died since 1 October 1994 and who were registered in the Personal Records Database (BRP) on the date of death. The date of death of persons who are not residents but were once residents of the Netherlands since 1 October 1994 and whose death information has been registered in the Register Non-Residents (RNI) are also included.
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- For details see: Official documentation of secmbus integraal persoonlijk inkomen This file contains the annual income of individuals belonging to the population of the Netherlands on 31st December of the study year. The main data supplier are the tax authorities. All individuals that appear in the basic tax register are included. Note that this file was replaced from 2011 on by INPATAB due to the revision of the income statistics 2017.
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- For details see: Official documentation of vslgwbtab secmbus This file contains monthly data on the socioeconomic category (SECM) of individuals registered since 1 January 1995. Information on separate sources of income, on which the SECM definition is based, is indicated for each relevant period. Also, the file indicates whether a person was registered as a student in the given month.
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- Impact of GM’s total monthly hours worked on mothers’ labor supply Total monthly hours worked 1-0.645** [0.285] 7.252 20711 2-0.822** [0.404] 9.986 26221 Other labor supply measures: Prob (Employed) 1-0.004* [0.002] 7.698 20711 2-0.004* [0.003] 10.942 29142 Prob (Full-time employed) 1-0.002 [0.001] 8.780 23497 2-0.002 [0.002] 10.091 29142 Average of optimal BW 9.1248 Average of optimal BW (linear) 7.9099 Average of optimal BW (quadratic) 10.3398 Notes: Table A11 shows the 2SLS estimates of grandmothers’ total monthly hours worked on mothers’ labor supply outcomes using the mean square error optimal bandwidths generated by the Calonico et al. (2017) and Calonico et al. (2018) procedure (the CCT bandwidths). The optimal bandwidths are generated separately for each outcome. Standard errors are in parentheses. *** p<0.01, ** p<0.05, * p<0.1. Source: Authors’ calculations from the CBS data.
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- Janta, B, “Caring for children in Europe: How childcare, parental leave and flexible working arrangements interact in Europe. Report prepared for the European Commission, Directorate-General for Employment, Social Affairs and Inclusion,” RAND Corporation, 2014, 2.
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- Jappens, Maaike and Jan Van Bavel, “Regional family norms and child care by grandparents in Europe,” Demographic Research, 2012, 27, 85–120.
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Kaufmann, Katja M, Matthias Messner, and Alex Solis, “Elite higher education, the marriage market and the intergenerational transmission of human capital,” CRCTR 224 Discussion Paper, 2021, No. 269.
- Kleven, Henrik, Camille Landais, and Jakob Egholt Søgaard, “Children and gender inequality: Evidence from Denmark,” American Economic Journal: Applied Economics, 2019, 11 (4), 181–209.
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Lalive, Rafael and Pierpaolo Parrotta, “How does pension eligibility affect labor supply in couples?,” Labour Economics, 2017, 46, 177–188.
- Laughlin, Lynda L, “Who’s Minding the Kids? Child Care Arrangements: Spring 2005/Summer 2006. Current Population Reports. P70-121.,” US Census Bureau, 2010.
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Lindeboom, Maarten and Raymond Montizaan, “Disentangling retirement and savings responses,” Journal of Public Economics, 2020, 192, 104297.
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Manoli, Day and Andrea Weber, “Nonparametric Evidence on the Effects of Financial Incentives on Retirement Decisions,” American Economic Journal: Economic Policy, November 2016, 8 (4), 160–82.
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- OECD, OECD Family database PF1.7: Intergenerational solidarity 2012.
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- of service (Bovenberg and Gradus, 2015). Retirement before the statutory AOW claiming age is only possible through the occupational pensions, which have sectoral early pension schemes as part of the collective agreements. During our sample period, the earliest possible ages to claim the occupational pensions are between ages 55 and 60, depending on their occupational group. The third pillar consists of non-mandatory savings. It is relatively small in the Netherlands and provides around 5% of pension income.
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- Olivetti, Claudia and Barbara Petrongolo, “The evolution of gender gaps in industrialized countries,” Annual review of Economics, 2016, 8, 405–434.
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- Posadas, Josefina and Marian Vidal-Fernandez, “Grandparents’ childcare and female labor force participation,” IZA Journal of Labor Policy, 2013, 2 (1), 1–20.
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Rupert, Peter and Giulio Zanella, “Grandchildren and their grandparents’ labor supply,” Journal of Public Economics, 2018, 159, 89–103.
- Schönberg, Uta and Johannes Ludsteck, “Expansions in maternity leave coverage and mothers’ labor market outcomes after childbirth,” Journal of Labor Economics, 2014, 32 (3), 469–505.
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- Since 2014/15 schools could choose between three compulsory final tests, of which the test designed by Cito on behalf of the Board for Tests and Exams is included in our data. The data includes information on the test results including seperate components (such as points on the verbal and mathematical part). For details see: Official documentation of CITOtab kinderopvang In each year, we observe information on the type and number of childcare hours in a reporting year for each child that used childcare under the Childcare Act. For details see: Official documentation of kinderopvang LISS panel The LISS panel is an online household panel. The panel consists of some 5000 households in the Netherlands, comprising approximately 7500 individuals over the age of 16. The panel is based on a true probability sample of households drawn from the population register by Statistics Netherlands.
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Stancanelli, Elena and Arthur Van Soest, “Retirement and home production: A regression discontinuity approach,” American Economic Review, 2012, 102 (3), 600–605.
Swart, Lisette, Wiljan Van den Berge, and Karen van der Wiel, “Do parents work more when children start school? Evidence from the Netherlands,” IZA Discussion Paper, 2019, 12207.
- Table A11 displays the estimated impacts and bandwidth for all relevant outcomes using the mean square error optimal bandwidths generated by the Calonico et al. (2017) and Calonico et al.
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- Table A13: Impacts on sub-sample selection RD estimates Mean at (1) (2) cutoff Sub-sample selection criteria Restrictions by age of youngest child Youngest aged 0-3-0.008-0.029* 0.647 [0.010] [0.017] [0.478] Youngest aged 4-7-0.002 0.003 0.525 [0.011] [0.018] [0.499] Youngest aged 8-12-0.003 0.016 0.293 [0.010] [0.016] [0.455] Youngest aged 13-18-0.006 0.000 0.130 [0.007] [0.012] [0.336] Obs. Mothers 39293 39293 6663 Obs. Grandmothers 29921 29921 Polynomial linear quadratic Note: Table A13 tests the impact of grandmothers being born since January 1950 on a list of sub-sample selection variables. All regressions are based on the sample selected after completing Steps 1 to 4 displayed in Table A12.Columns 1 and 2 show results based on local linear and quadratic regressions with a bandwidth of 8 months, respectively. Robust standard errors clustered at grandmother’s level are in parentheses. *** p<0.01, ** p<0.05, * p<0.1. Source: Authors’ calculations from the CBS data.
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- Table A15 reports the estimated impact of a grandmother being treated (i.e. born since January 1950) on a list of predetermined characteristics of the Cito-sample. We show results using a linear and quadratic specification with a bandwidth of 8 months around the cutoff. All covariants are smooth, so that treated and non-treated grandchildren are comparable in terms of children’s covariates, such as, among other things, birth year and month, gender, birth order, and family situation.
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- The 2006 reform reduced pension replacement rates between age 60 and 64 from 70% to 64% (Lindeboom and Montizaan (2020) Table A.1). For a typical woman with average labor earnings of 727 euro and an average pension claim duration of 17 years,5 we calculate that the government saves about 8900 euro per person. The behavioral costs consist of the direct impact on grandmothers and the indirect spillover effects on mothers. First, we calculate the net cost of the pension reform from the direct impact on grandmothers. The reduced form estimates show that grandmothers earn 106 euros more per month between age 60 and 64 (Table A2). Average monthly labor earnings around the cutoff are 727 euros. Using the Dutch Income Tax Calculator, we find that the government increases the amount of taxes raised by 484 euro per person during those four years.
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- The reform bill no. 29760 includes a clause to adjust fiscal policy VUT and prepension (Wet voor aanpassing fiscal behandeling VUT and pre-pension) and is sometimes referred to as the 56-plus scheme (de 56-plusregeling). People, who were 55 years or older before January 1, 2005 are not affected by the reform.
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- The second pillar, the occupational pensions, which we focus on in our analysis, are collective pension schemes connected to a specific industry or company, capital-funded, and managed by pension funds. The majority of these schemes are of the defined benefit type. Contribution to the second pillar is mandatory, and more than 90 percent of the workers in the Netherlands contribute to a collective pension fund via their employer. The contribution rate is 14% of gross wages, of which 70% is contributed by the employers and 30% by the employees. These schemes typically aim at a replacement rate of about 80% (including the AOW benefits) of average pay after 40 years 1Since 2012, the state pension claiming age was set to gradually increase, reaching 66 in 2018 and 67 in 2021. For our baseline sample of grandmothers, their state pension claiming ages are between 65 and 2 months and 65 and 3 months.
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- The second-stage reduced form impacts of grandmothers being born since January 1950 are reported in the table. All specifications use local linear regression with a bandwidth of 8 months including controls and sector fixed effect. Robust standard errors clustered at grandmother’s level are in parentheses. *** p<0.01, ** p<0.05, * p<0.1.. Source: Authors’ calculations from the CBS data.
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Zhang, Jing, Simon Appleton, Lina Song, and Bing Liu, “Who looks after the kids? the effects of childcare choice on early childhood development in China,” Oxford Bulletin of Economics and Statistics, 2021, 83 (3), 619–640.