Informal And Formal Care In Europe
AbstractGovernment expenditure on formal residential care and home-help services for the elderly significantly reduces 45-59 year old womenâs informal care-giving affecting both the extensive and the intensive margin. Allowing for country fixed-effects and country-specific trends and correcting for attrition, the estimates â based on the European Community Household Panel â imply that a 1000 Euro increase in the government expenditure on formal residential care and home-help services for the elderly decreases the probability of informal care-giving outside of the caregiverâs household by 6 percentage points. Formal care substitutes for informal care that is undertaken outside of the carerâs own household, but does not substitute for intergenerational household formation. A simulation exercise shows that an increase in government formal care expenditure is a cost-effective way of increasing the labour force participation rates.
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Bibliographic InfoPaper provided by The University of Sheffield, Department of Economics in its series Working Papers with number 2007010.
Length: 25 pages
Date of creation: Jun 2007
Date of revision: Jun 2007
informal care; formal care; ECHP; attrition bias;
Other versions of this item:
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- J2 - Labor and Demographic Economics - - Demand and Supply of Labor
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