ZOU Hong;WEN Sha;PENG Zhengcheng
School of Economics, Southwestern University of Finance and Economics;School of Economics, Southwestern University of Finance and Economics;School of Economics, Southwestern University of Finance and Economics
As the acceleration of population aging in China, the power of demographic dividend to drive the economic growth has gone. The decisions of quitting the labor market which do not make the best use of human capital, such as early retirement, have become an important factor that restricts economic development in China. From the perspective of domestic division of labor, based on data of CHARLS in 2011, 2013 and 2015, this paper uses the instrumental variable method to analyze the causality between caring for grandchildren and the decision of early retirement. The study found that caring for grandchildren significantly increased the risk of early retirement by about 18.8% and significantly advanced the retirement age by about 1.4 years for middle-aged and elderly people, and found that the index of subjectively reported early retirement has serious measurement bias. We also found that the effect is stronger for women with one child and lower education level, who work in enterprises. Further discussion found that there was a significantly positive correlation between the salary of babysitting at community level and caring for grandchildren while providing grandchild care did not increase the probability of children’s economic transfer to their parents. Family grandchild care was still necessary under the condition of insufficient market care resources. This shows that the effectiveness of retirement age policy of gradually and flexibly delaying the statutory retirement age will be very limited. However, implementing inspiring tax policy and subsidy policies, and developing and perfecting the service market of caring can effectively alleviate the conflict between family care responsibilities and grandparents’ employment behavior of the labor market, which will ensure the implementation of the retirement policy that delaying the statutory retirement age.
grandchild care;early retirement;retirement age;retirement age policy
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