The Impact of Living with an Elder Parent on Adult Daughter's Labor Supply and Hours of Work

A pooled cross-sectional sample compiled from eleven years of the Panel Study of Income Dynamics is used to compare the impact of individual and household characteristics on labor supply probabilities and work hours of adult daughters in two types of households: (a) households in which adult daughters co-reside with elder parents; and (b) households in which adult daughters have living elder parents, but they do not co-reside with elder parents. Labor market entry and market work hours of co-residing daughters are impacted by both the presence and the characteristics of their elder parent. The daughter's age, race, and work experience have differential impacts on labor supply probabilities for co-residing daughters compared to those not co-residing. The daughters' work experience, non-wage income, family composition, and local unemployment rates have differential impacts on the number of hours of work in the two types of households.