Intergenerational Caregiving and Well-Being: Causal Evidence from Children’s Proximity Using SHARE Data

This thesis investigates the causal impact of intergenerational caregiving on the well-being of European older adults, with a specific focus on grandparental childcare as a key manifestation of informal family support. Using data from the Survey of Health, Ageing and Retirement in Europe (SHARE, Wave 8), the study addresses the endogeneity of caregiving decisions by employing an instrumental variable (IV) approach. The instrument is based on the geographic proximity between parents and their adult children, under the assumption that shorter distances increase the likelihood of providing care to grandchildren. The empirical strategy follows a two-stage least squares (2SLS) framework, where the treatment variable is the provision of grandchild care, and outcomes include physical and mental health indicators, such as social isolation, loneliness, depressive symptoms, self-perceived health and physical inactivity. While the instrument is relevant, potential concerns remain regarding the exclusion restriction and possible reverse causality, which are carefully discussed throughout the analysis with robustness check. Main results suggests that childcare provision is significantly negatively correlated with loneliness and social isolation, boosting social contact and emotional belonging. However, the positive correlation between informal care and physical inactivity suggests role-strain effect and time constraint for self-care.