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Informal care and labor market participation

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Author Info

  • Leigh, Andrew

Abstract

Understanding the effect of informal care for an elderly or disabled person on labor market outcomes is important for developing policies targeted towards caregivers. However, because of omitted variables bias, simple cross-sectional relationships may provide a misleading picture of the causal impact of informal care provision on labor force status. To address this, I use panel data for the period 2001-2007, which make it possible to track the same individuals over time, and observe how their outcomes alter as their care arrangements change. While caregiving does appear to have a modest negative impact on labor force participation, this impact is only one-quarter to one-sixth as large in the panel as in the cross-section. Taking account of individual heterogeneity, the impact of caregiving on other labor force outcomes (and on life satisfaction) seems to be small or non-existent. Large estimated effects from cross-sectional regressions are most likely driven by individual heterogeneity. One possible interpretation of this result is that the impact of caregiving on labor market outcomes and life satisfaction takes several years to manifest itself. Another is that the causal effect of caregiving on labor force outcomes and life satisfaction is quite small.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 17 (2010)
Issue (Month): 1 (January)
Pages: 140-149

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Handle: RePEc:eee:labeco:v:17:y:2010:i:1:p:140-149

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Non-market care Labor supply Life satisfaction Panel data;

References

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  1. Fevang, Elisabeth & Kverndokk, Snorre & Røed, Knut, 2008. "Informal Care and Labor Supply," IZA Discussion Papers 3717, Institute for the Study of Labor (IZA).
  2. Jens Lundsgaard, 2005. "Consumer Direction and Choice in Long-Term Care for Older Persons, Including Payments for Informal Care: How Can it Help Improve Care Outcomes, Employment and Fiscal Sustainability?," OECD Health Working Papers 20, OECD Publishing.
  3. Anna A. Amirkhanyan & Douglas A. Wolf, 2006. "Parent Care and the Stress Process: Findings From Panel Data," Journals of Gerontology: Series B, Gerontological Society of America, vol. 61(5), pages S248-S255.
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Citations

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Cited by:
  1. Drinkwater, Stephen, 2011. "Informal Caring and Labour Market Outcomes Within England and Wales," IZA Discussion Papers 5877, Institute for the Study of Labor (IZA).
  2. Nguyen, Ha Trong & Connelly, Luke Brian, 2014. "The effect of unpaid caregiving intensity on labour force participation: Results from a multinomial endogenous treatment model," Social Science & Medicine, Elsevier, vol. 100(C), pages 115-122.
  3. Cipollone, Angela & Patacchini, Eleonora & Vallanti, Giovanna, 2013. "Women Labor Market Participation in Europe: Novel Evidence on Trends and Shaping Factors," IZA Discussion Papers 7710, Institute for the Study of Labor (IZA).
  4. Schmitz, Hendrik & Stroka, Magdalena A., 2013. "Health and the double burden of full-time work and informal care provision — Evidence from administrative data," Labour Economics, Elsevier, vol. 24(C), pages 305-322.
  5. Andreas Kotsadam, 2012. "The employment costs of caregiving in Norway," International Journal of Health Care Finance and Economics, Springer, vol. 12(4), pages 269-283, December.
  6. Hendrik Schmitz & Matthias Westphal, 2013. "Short- and Medium-term Effects of Informal Care Provision on Health," Ruhr Economic Papers 0426, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  7. David Bravo & Esteban Puentes, 2012. "Female Labor Force Participation and Informal Care of Adults: Evidence for a middle-income country," Working Papers wp353, University of Chile, Department of Economics.
  8. Mark L. Bryan, 2012. "Access to Flexible Working and Informal Care," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(4), pages 361-389, 09.
  9. M. Deidda & A. Di Liberto & M. Foddi & G. Sulis, 2012. "Employment Subsidies, Informal Economy and Women’s Transition into Work in a Depressed Area: Evidence from a Matching Approach," Working Paper CRENoS 201216, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  10. Cipollone, Angela & Patacchini, Eleonora & Vallanti, Giovanna, 2012. "Women’s Labour Market Performance in Europe: Trends and Shaping Factors," CEPS Papers 7329, Centre for European Policy Studies.

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