Dynamic Wage and Employment Effects of Elder Parent Care
AbstractThis 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 InfoPaper provided by Society for Economic Dynamics in its series 2013 Meeting Papers with number 79.
Date of creation: 2013
Date of revision:
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Postal: Society for Economic Dynamics Christian Zimmermann Economic Research Federal Reserve Bank of St. Louis PO Box 442 St. Louis MO 63166-0442 USA
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Other versions of this item:
- Meghan Skira, 2012. "Dynamic Wage and Employment Effects of Elder Parent Care," Boston College Working Papers in Economics 792, Boston College Department of Economics, revised 16 Aug 2013.
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-08-23 (All new papers)
- NEP-DEM-2013-08-23 (Demographic Economics)
- NEP-DGE-2013-08-23 (Dynamic General Equilibrium)
- NEP-HEA-2013-08-23 (Health Economics)
- NEP-HRM-2013-08-23 (Human Capital & Human Resource Management)
- NEP-LMA-2013-08-23 (Labor Markets - Supply, Demand, & Wages)
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