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Abstract
This paper explores the impact of grandparental childcare on labor market gender inequalities in China, particularly focusing on how grandmothers' involvement influences maternal employment outcomes. Employing a three-agent simultaneous choice model within a three-generational family framework, this study integrates theoretical analysis with empirical evidence from the China Family Panel Studies. The empirical analysis utilizes a Difference-in-Differences (DID) approach to examine the effects of a grandparent's death on parental employment decisions. My findings reveal that the loss of grandparental childcare, especially following the death of a grandmother, significantly reduces mothers' labor participation and income. This research underscores the critical role of grandparents in the labor market dynamics and highlights the necessity for policy interventions to support working families, addressing broader issues of gender inequality in China.