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Carefree? Participation and Pay Differentials for Informal Carers in Britain

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Author Info
Heitmueller, Axel () (Department for Work and Pensions, London, London Business School and IZA Bonn)
Inglis, Kirsty (Department for Work and Pensions, London)

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Abstract

A substantial proportion of working age individuals in Britain are looking after sick, disabled, and elderly people and combine work and caring responsibilities. Using the British Household Panel Study (BHPS) for the years 1991 to 2002 this paper studies the determinants of labour market participation as well as earnings differentials for informal carers and non-carers over time. In particular, the paper decomposes participation and wage differentials for non-carers and carers and shows that carers are systematically disadvantaged. Furthermore, opportunity costs from forgone wages and wage discrimination are estimated and found to be substantial.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1273.

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Length: 54 pages
Date of creation: Aug 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1273

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Related research
Keywords: decomposition; fixed effects model; Markov transition; opportunity costs;

Find related papers by JEL classification:
J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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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. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  2. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, vol. 65(6), pages 1335-1364, November.
  3. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, vol. 17(6), pages 747-765, December. [Downloadable!] (restricted)
  4. Carmichael, Fiona & Charles, Susan, 2003. "The opportunity costs of informal care: does gender matter?," Journal of Health Economics, Elsevier, vol. 22(5), pages 781-803, September. [Downloadable!] (restricted)
  5. Jones, David R & Makepeace, Gerald H, 1996. "Equal Worth, Equal Opportunities: Pay and Promotion in an Internal Labour Market," Economic Journal, Royal Economic Society, vol. 106(435), pages 401-09, March. [Downloadable!] (restricted)
  6. Alan Manning & Helen Robinson, 2004. "Something in the way she moves: a fresh look at an old gap," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 169-188, April. [Downloadable!] (restricted)
    Other versions:
  7. Verbeek, Marno & Nijman, Theo, 1992. "Testing for Selectivity Bias in Panel Data Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(3), pages 681-703, August. [Downloadable!] (restricted)
    Other versions:
  8. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October. [Downloadable!] (restricted)
    Other versions:
  9. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July. [Downloadable!] (restricted)
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