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Carefree? Participation and Pay Differentials for Informal Carers in Britain

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  • Heitmueller, Axel

    ()
    (Cabinet Office, UK)

  • Inglis, Kirsty

    ()
    (Department for Work and Pensions, UK)

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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Bibliographic 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:
Publication status: published as "The earnings of informal carers: Wage differentials and opportunity costs" in: Journal of Health Economics, 2007, 26 (4), 821-841
Handle: RePEc:iza:izadps:dp1273

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

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References

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  1. Francis Vella, 1998. "Estimating Models with Sample Selection Bias: A Survey," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 127-169.
  2. Jones, David R & Makepeace, Gerald H, 1996. "Equal Worth, Equal Opportunities: Pay and Promotion in an Internal Labour Market," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(435), pages 401-09, March.
  3. Verbeek, M. & Nijman, T., 1990. "Testing For Selectivity Bias In Panel Data Models," Papers, Tilburg - Center for Economic Research 9018, Tilburg - Center for Economic Research.
  4. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, Elsevier, vol. 17(6), pages 747-765, December.
  5. Alan Manning & Helen Robinson, 1998. "Something in the way She Movcs: A Fresh Look at an Old Gap," CEP Discussion Papers dp0389, Centre for Economic Performance, LSE.
  6. Tania Burchardt, 2003. "Being and becoming: Social exclusion and the onset of disability," CASE Reports, Centre for Analysis of Social Exclusion, LSE casereport21, Centre for Analysis of Social Exclusion, LSE.
  7. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  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, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  9. Carmichael, Fiona & Charles, Susan, 2003. "The opportunity costs of informal care: does gender matter?," Journal of Health Economics, Elsevier, Elsevier, vol. 22(5), pages 781-803, September.
  10. Nijman, T.E. & Verbeek, M.J.C.M., 1992. "Testing for selectivity in panel data models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153280, Tilburg University.
  11. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, Elsevier, vol. 68(1), pages 115-132, July.
  12. Ekaterini Kyriazidou, 1997. "Estimation of a Panel Data Sample Selection Model," Econometrica, Econometric Society, Econometric Society, vol. 65(6), pages 1335-1364, November.
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Citations

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Cited by:
  1. Heitmueller, Axel, 2004. "The Chicken or the Egg? Endogeneity in Labour Market Participation of Informal Carers in England," IZA Discussion Papers 1366, Institute for the Study of Labor (IZA).
  2. Annika Meng, 2009. "Informal Home Care and Labor Force Participation of Household Members," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0152, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  3. Annika Meng, 2010. "Long-term Care Responsibility and its Opportunity Costs," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0168, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  4. Kotsadam, Andreas, 2009. "Effects of informal eldercare on female labor supply in different European welfare states," Working Papers in Economics, University of Gothenburg, Department of Economics 353, University of Gothenburg, Department of Economics.

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