Title page

Contents

Abstract 3

1. Introduction 4

2. Institutional Background 8

2.1. Disability insurance in the Netherlands 8

2.2. 1993 reform 9

3. Data and Descriptive Statistics 11

3.1. Administrative data 11

3.2. Grandchild outcomes 12

4. Empirical Model 14

5. Results 15

5.1. First Stage 15

5.2. Third generation effects 16

6. Conclusion 20

References 22

Online Appendix 31

Table 1. Summary statistics for third generation outcomes 29

Table 2. RD estimates for the third generation 30

Figure 1. First stage RD graphs for grandparent DI participation and benefits 26

Figure 2. RD graphs for third generation outcomes 27

Figure 3. RD estimates for different gestational age and birthweight cutoffs 28

Table A.1. RD estimates for covariate balance 32

Table A.2. Robustness checks 33

Table A.3. Placebo tests: RD estimates using grandparents not on DI at the time of the reform 34