The impact of grandchildren on retirement timing: evidence from SHARE data
|Author:||Mgr. Jan Srna|
|Year:||2021 - summer|
|Leaders:|| Mgr. Barbara Pertold-Gebicka M.A., Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||This thesis examines the role of grandchildren´s existence in the retirement timing decisionmaking process of grandparents. Previous literature has focused mostly on other aspects of
retirement and potential causes that can affect its timing. Using the Two-Stage least squares
estimation on the SHARE dataset, representing 17 European countries and Israel, we estimate
the desired effect with respect to various data limitations (age groups, gender, child existence).
Residential proximity is used as the instrument for estimation. Having at least one grandchild
yields a statistically significant result that increases on average the likelihood of retirement by
19% when compared to a non-grandparent while holding other factors constant. As a secondary
outcome, the estimated effect of an additional child on retirement likelihood is negative