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Grandparental Health Shocks and Adult Children's Fertility Choices

Grandparental Health Shocks and Adult Children's Fertility Choices, Laura Jernström, Economics, University of Helsinki and Finnish Institute for Health and Welfare

1st Feb online

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Abstract

Using administrative data I exploit the plausibly random timing of a  grandparental health shock within a short window to study the impacts on adult children's fertility behaviour. I find that a severe  grandparental hospitalization increases the probability of birth by 12% or by 8 additional births per 1,000 affected individuals three years after the shock. However, I find that a  grandparental death decreases the probability of birth by 14% or by 6 less births per 1,000 affected individuals four years after the shock. I find suggestive evidence that an increase in the availability of informal child care by the grandparents may play an important role, while informal care by the adult children does not appear to affect fertility behaviour.

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