Educational support by grandparents and human capital growth: an OLG model with endogenous time allocation

This study explores the role of grandparents in the education of their grandchildren within an overlapping generations model. We introduce an endogenously determined time allocation, where grandparents decide how much time to dedicate to their grandchildren's education based on a trade-off between leisure and educational contributions. The model shows that grandparental involvement in education influences the intergenerational transmission of human capital, with the potential for long-term effects on economic outcomes. By combining theoretical analysis and simulations, we highlight the dynamic relationship between grandparental education, human capital development, and the generational transmission process.