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Carefree? Participation and Pay Differentials for Informal Carers in Britain

Author

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  • Heitmueller, Axel

    (Imperial College London)

  • 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.

Suggested Citation

  • Heitmueller, Axel & Inglis, Kirsty, 2004. "Carefree? Participation and Pay Differentials for Informal Carers in Britain," IZA Discussion Papers 1273, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1273
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    References listed on IDEAS

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    8. 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.
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    Cited by:

    1. Andreas Kotsadam, 2012. "The employment costs of caregiving in Norway," International Journal of Health Economics and Management, Springer, vol. 12(4), pages 269-283, December.
    2. Thomas Bauer & Magdalena Stroka, 2013. "Female labour supply and nursing home prices," Health Care Management Science, Springer, vol. 16(3), pages 258-270, September.
    3. Keating, Norah C. & Fast, Janet E. & Lero, Donna S. & Lucas, Sarah J. & Eales, Jacquie, 2014. "A taxonomy of the economic costs of family care to adults," The Journal of the Economics of Ageing, Elsevier, vol. 3(C), pages 11-20.
    4. Dasgupta, Sukti. & Bhula-or, Ruttiya. & Fakthong, Tiraphap., 2015. "Earnings differentials between formal and informal employment in Thailand," ILO Working Papers 994896403402676, International Labour Organization.
    5. Heitmueller, Axel, 2007. "The chicken or the egg?: Endogeneity in labour market participation of informal carers in England," Journal of Health Economics, Elsevier, vol. 26(3), pages 536-559, May.
    6. Kotsadam, Andreas, 2009. "Effects of informal eldercare on female labor supply in different European welfare states," Working Papers in Economics 353, University of Gothenburg, Department of Economics.
    7. Annika Meng, 2013. "Informal home care and labor-force participation of household members," Empirical Economics, Springer, vol. 44(2), pages 959-979, April.

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    More about this item

    Keywords

    fixed effects model; opportunity costs; Markov transition; decomposition;
    All these keywords.

    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; Spatio-temporal Models

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