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Dynamic Wage and Employment Effects of Elder Parent Care

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  • Meghan Skira

    (University of Georgia)

Abstract

This paper formulates and estimates a dynamic discrete choice model of elder parent care and work to analyze how caregiving affects a woman's current and future labor force participation and wages. The model incorporates parental health changes, human capital accumulation, and job offer availability. The estimates indicate that women face low probabilities of returning to work or increasing work hours after a caregiving spell. I use the estimated model to simulate the caregiving, employment, and welfare effects of a longer unpaid work leave than currently available under the Family and Medical Leave Act, a paid leave, and a caregiver allowance.

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Bibliographic Info

Paper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 79.

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Date of creation: 2013
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Handle: RePEc:red:sed013:79

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  1. Laura Crespo & Pedro Mira, 2010. "Caregiving To Elderly Parents And Employment Status Of European Mature Women," Working Papers wp2010_1007, CEMFI.
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  7. Steven Stern & Tennille J. Neuharth, 2000. "Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents," Virginia Economics Online Papers 323, University of Virginia, Department of Economics.
  8. Steven Stern & Maxim Engers, . "Long-Term Care and Family Bargaining," Virginia Economics Online Papers 320, University of Virginia, Department of Economics.
  9. Elisabeth Fevang & Snorre Kverndokk & Knut Røed, 2012. "Labor supply in the terminal stages of lone parents’ lives," Journal of Population Economics, Springer, vol. 25(4), pages 1399-1422, October.
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Cited by:
  1. Michelle Sovinsky & Steven Stern, 2013. "Dynamic modelling of long-term care decisions," ECON - Working Papers 113, Department of Economics - University of Zurich.
  2. Michelle Sovinsky & Steven Stern, 2012. "Dynamic Modelling of Long-Term Care Decisions," Working Papers 2012-019, Human Capital and Economic Opportunity Working Group.

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