Grandparental Childcare, Maternal Labour Force Participation, and Birth of the Second Child: Evidence from China

Abstract

This study investigates the effect of grandparental childcare on the second birth in China when considering the mediating role of maternal labor participation, drawing on the China Migrants Dynamic Survey in 2016. By controlling sample selection bias and endogeneity with an endogenous switching Probit regression model, our analysis finds that grandparental childcare of the first child has a positive and significant effect on the second birth regardless of whether the mother participates in the labor market or not. To further understand how the positive effect comes to be, we make a mediation analysis which demonstrates the mediating effect of maternal labor force participation. It indicates a significant and negative effect of grandparenting on the second birth through promoting maternal employment. However, due to the positive, direct effect of the grandparental childcare on the second birth, the total effect is still positive.