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Caring For Parents And Employment Status Of European Mid-Life Women

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Author Info
Laura Crespo () (CEMFI, Centro de Estudios Monetarios y Financieros)
Abstract

In this paper we estimate the causal effect of providing “intensive” informal care to elderly parents on labour market participation decisions for European women who are themselves approaching retirement. In particular, we consider the frequency or intensity of this help and we focus on informal care provided in a daily or weekly basis. We use two different but comparable samples drawn from the Survey of Health, Ageing and Retirement in Europe (SHARE) that provide complementary detailed information about daughters and parents. We obtain evidence about this question for two groups of European countries that strongly differ in terms of informal caregiving intensity within the immediate family and the use of formal care: the northern countries (Sweden, Denmark and The Netherlands), and the southern countries (Spain, Italy and Greece). The results show that the estimated effect of providing “intensive” informal care to elderly parents on the probability of labour participation is negative and large for both groups of countries. Furthermore, a substantially stronger effect is found when the “intensive” caregiving variable is treated as endogenous in the labour participation equation. This shows that the potential opportunity costs in terms of (reduced) employment associated with the provision of informal care by women are seriously underestimated under the exogeneity assumption of the caregiving regressor.

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Paper provided by CEMFI in its series Working Papers with number wp2006_0615.

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Date of creation: Dec 2006
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Handle: RePEc:cmf:wpaper:wp2006_0615

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Related research
Keywords: Binary choice; labour force participation decisions; parental informal caregiving; endogenous variables; simultaneous estimation.;

Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
D1 - Microeconomics - - Household Behavior

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Eric Bonsang, 2006. "How do middle-aged children allocate time and money transfers to their older parents in Europe?," CREPP Working Papers 0602, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège. [Downloadable!]
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  2. Carrasco, Raquel, 2001. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labor Participation," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 385-94, October.
    Other versions:
  3. Stéphane Jacobzone, 1999. "Ageing and Care for Frail Elderly Persons: An Overview of International Perspectives," OECD Labour Market and Social Policy Occasional Papers 38, OECD, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
  4. Madden, D. & Walker, I., 1999. "Labour Supply, Health and Caring: Evidence from the UK," Papers 99/28, College Dublin, Department of Political Economy-.
    Other versions:
  5. C. Katharina Spiess & Ulrike Schneider, 2002. "Midlife Caregiving & Employment: an Analysis of Adjustments in Work Hours and Informal Care for Female Employees in Europe," Economics Working Papers 009, European Network of Economic Policy Research Institutes. [Downloadable!]
  6. Arellano, Manuel & Meghir, Costas, 1992. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated Using Complementary Data Sets," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 537-59, July. [Downloadable!] (restricted)
  7. Alfredo Ariza & Sara de la Rica & Arantza Ugidos, 2003. "The effect of flexibility in working hours on fertility: A comparative analysis," DFAEII Working Papers 200308, University of the Basque Country - Department of Foundations of Economic Analysis II. [Downloadable!]
  8. Axel Heitmueller & Pierre-Carl Michaud, 2006. "Informal Care and Employment in England: Evidence from the British Household Panel Survey," IZA Discussion Papers 2010, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. David Casado & Pilar García Gómez & Ángel López, 2007. "Informal care and labour force participation among middle-aged women in Spain," Economics Working Papers 1023, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
  2. David Casado & Pilar García Gómez & Ángel López, 2007. "Informal care and labour force participation among middle-aged women in Spain," Working Papers, Research Center on Health and Economics 1023, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
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