Abstract
ABSTRACTThis study estimates the causal effect of retirement on grandchild care in urban China. It utilizes the exogenous variations in retirement status caused by China’s mandatory retirement-age policy. Drawing on the data of individuals close to retirement age from the 2011 and 2013 waves of the China Health and Retirement Longitudinal Study (CHARLS), the analysis shows a statistically significant increase of 29 percentage points in the provision of grandchild care after the transition to retirement for women and a 21 percentage-point increase for men. Moreover, the study finds that grandchild care is demand driven for men and supply driven for women. It also finds that women with lower education levels have a lower probability of retirement after reaching eligible age but are more likely to provide grandchild care after retirement.
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