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Informal Care and Labor Supply

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Author Info
Fevang, Elisabeth () (Ragnar Frisch Centre for Economic Research)
Kverndokk, Snorre () (Ragnar Frisch Centre for Economic Research)
Roed, Knut () (Ragnar Frisch Centre for Economic Research)

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Abstract

Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring's labor market activity. The employment propensity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent's death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the parent's demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3717.

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Length: 39 pages
Date of creation: Sep 2008
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Handle: RePEc:iza:izadps:dp3717

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Related research
Keywords: elderly care; labor supply; ageing; inheritance;

Other versions of this item:

Find related papers by JEL classification:
J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped
J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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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. Bolin, K. & Lindgren, B. & Lundborg, P., 2008. "Your next of kin or your own career?: Caring and working among the 50+ of Europe," Journal of Health Economics, Elsevier, vol. 27(3), pages 718-738, May. [Downloadable!] (restricted)
    Other versions:
  2. Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November. [Downloadable!] (restricted)
  3. Elin Halvorsen and Thor O. Thoresen, 2005. "The relationship between altruism and equal sharing. Evidence from inter vivos transfer behavior," Discussion Papers 439, Research Department of Statistics Norway. [Downloadable!]
  4. Kai A. Konrad & Harald Künemund & Kjell Erik Lommerud & Julio R. Robledo, 2002. "Geography of the Family," American Economic Review, American Economic Association, vol. 92(4), pages 981-998, September. [Downloadable!]
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  5. Lisa Callegaro & Giacomo Pasini, 2007. "Social interaction effects in an inter-generational model of informal care giving," Working Papers 2007_10, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
  6. Joulfaian, D. & Wilheim, M.O., 1992. "Inheritance and Labor Supply," Papers 6-92-2, Pennsylvania State - Department of Economics.
  7. 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)
  8. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1993. "The Carnegie Conjecture: Some Empirical Evidence," The Quarterly Journal of Economics, MIT Press, vol. 108(2), pages 413-35, May. [Downloadable!] (restricted)
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  9. Helmut Rainer & Thomas Siedler, 2005. "O Brother, Where Art Thou? The Effects of Having a Sibling on Geographic Mobility and Labor Market Outcomes," Economics Discussion Papers 598, University of Essex, Department of Economics. [Downloadable!]
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  10. Bonsang, Eric, 2009. "Does informal care from children to their elderly parents substitute for formal care in Europe?," Journal of Health Economics, Elsevier, vol. 28(1), pages 143-154, January. [Downloadable!] (restricted)
  11. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec.. [Downloadable!] (restricted)
  12. Michael, Robert T, 1973. "Education in Nonmarket Production," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 306-27, Part I, M. [Downloadable!] (restricted)
  13. 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. [Downloadable!] (restricted)
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  14. 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. Markussen, Simen & Roed, Knut & Røgeberg, Ole J. & Gaure, Simen, 2009. "The Anatomy of Absenteeism," IZA Discussion Papers 4240, Institute for the Study of Labor (IZA). [Downloadable!]
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