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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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Bibliographic Info

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

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

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

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References

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  1. Maxim Engers & Steven Stern, 2002. "Long-Term Care and Family Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 73-114, February.
  2. David Madden & Ian Walker, 1999. "Labour Supply, Health and Caring - Evidence from the UK," Working Papers 199928, School Of Economics, University College Dublin.
  3. Carrasco, R., 1998. "Binary Choice with Binary Endogenous Regressors in Panel Data: Estimating the Effect of Fertility on Female Labour Participation," Papers 9805, Centro de Estudios Monetarios Y Financieros-.
  4. 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 Publishing.
  5. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
  6. 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.
  7. David Byrne & Michelle S. Goeree & Bridget Hiedemann & Steven Stern, 2009. "Formal Home Health Care, Informal Care, And Family Decision Making," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(4), pages 1205-1242, November.
  8. M Arellano & Costas Megir & Mary Silles, 1990. "Female Labour Supply and On-the-Job Search: An Empirical Model Estimated using Complementary Data Sets," CEP Discussion Papers dp0009, Centre for Economic Performance, LSE.
  9. De la Rica Goiricelaya, Sara & Ugidos Olazabal, Arantza & Ariza, Alfredo, 2003. "The effect of flexibility in working hours on fertility: A comparative analysis of selected european countries," DFAEII Working Papers 2003-08, University of the Basque Country - Department of Foundations of Economic Analysis II.
  10. Heitmueller, Axel & Michaud, Pierre-Carl, 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).
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Citations

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Cited by:
  1. Rafael Repullo & David Martínez-Miera, 2008. "Does Competition Reduce The Risk Of Bank Failure?," Working Papers wp2008_0801, CEMFI.
  2. Rafael Repullo & Javier Suarez, 2008. "The Procyclical Effects Of Basel Ii," Working Papers wp2008_0809, CEMFI.
  3. Catherine Pollak & Nicolas Sirven, 2012. "Active Ageing Beyond the Labour Market: Evidence on Work Environment Motivations," Working Papers DT48, IRDES institut for research and information in health economics, revised May 2012.
  4. Lídia Farré & Libertad González Luna & Francesc Ortega, 2009. "Immigration, family responsibilities and the labor supply of skilled native women," Economics Working Papers 1161, Department of Economics and Business, Universitat Pompeu Fabra.
  5. Ciani, Emanuele, 2012. "Informal adult care and caregivers' employment in Europe," Labour Economics, Elsevier, vol. 19(2), pages 155-164.
  6. Fontaine, Roméo, . "The effect of public subsidies for formal care on the care provision for disabled elderly people in France," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/9268, Université Paris-Dauphine.
  7. David Casado-Marín & Pilar García-Gómez & Ángel López-Nicolás, 2011. "Informal care and labour force participation among middle-aged women in Spain," SERIEs, Spanish Economic Association, vol. 2(1), pages 1-29, March.
  8. 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.
  9. Lisa Callegaro & Giacomo Pasini, 2007. "Social interaction effects in an inter-generational model of informal care giving," Working Papers 2007_10, Department of Economics, University of Venice "Ca' Foscari".
  10. Joan Llull, 2008. "The Impact Of Immigration On Productivity," Working Papers wp2008_0802, CEMFI.
  11. David Casado-Marín & Pilar García-Gómez & Ángel López-Nicolás, 2008. "Labour and income effects of caregiving across Europe: an evaluation using matching techniques," Health, Econometrics and Data Group (HEDG) Working Papers 08/23, HEDG, c/o Department of Economics, University of York.
  12. Catherine Pollak & Nicolas Sirven, 2011. "The social economy of ageing : Job quality and pathways beyond the labour market in Europe," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00639928, HAL.
  13. Catherine Pollak & Nicolas Sirven, 2011. "The social economy of ageing : Job quality and pathways beyond the labour market in Europe," Post-Print halshs-00639928, HAL.

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