Journal of Family and Economic Issues, Vol. 21(2), Summer 2000  2000 Human Sciences Press, Inc. 149 The Impact of Living with an Elder Parent on Adult Daughter’s Labor Supply and Hours of Work Jane Kolodinsky University of Vermont Lee Shirey National Academy on an Aging Society ABSTRACT: 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 par- ents; 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-resid- ing. 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. KEY WORDS: co-residence; female labor supply; intergenerational transfers. Introduction The elder population in the United States is estimated to reach over 53 million, or 16.4% of the population, by 2020 (Administration on Aging, 1997). Of all noninstitutionalized elders in 1995, over five million were living with children, siblings, or other relatives as op- posed to with a spouse, and an additional one-half million lived with Jane Kolodinsky is professor of Consumer Economics in the Department of Commu- nity Development and Applied Economics at the University of Vermont. Her research interests include the economics of aging and health and consumer welfare in an in- creasingly complex society. She may be contacted by e-mail at: jkolodinzoo.uvm.edu. Lee Shirey is a research associate at the National Academy on an Aging Society. Her research interests focus on long-term care for elders.