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Labour and income effects of caregiving across Europe: an evaluation using matching techniques

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Author Info
David Casado-Marín
Pilar García-Gómez
Ángel López-Nicolás
Abstract

This paper offers evidence on the effects of caregiving (i.e. looking after a dependent person within or outside the household) on labour outcomes such as employment, full time employment (conditional on employment), and income for women aged between 30 and 60 across different European countries. It does so by exploiting data from the European Community Household Panel (1994-2001) in order to match women who have become caregivers with “control” women who are deemed to be comparable in all relevant characteristics and compute a non-parametric measure of the effect of becoming a caregiver on the outcomes mentioned above. Our results suggest that, for women who are working before becoming a caregiver there is no statistically significant change in the chances of being employed. However, in the case of women who were not working prior to becoming a caregiver, there is a statistically significant decrease in the chances of entering employment. We also detect a negative and significant effect on labour income, which tends to be offset by a parallel increase in social transfers, except in the case of women with low levels of education in the Southern countries.

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Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 08/23.

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Date of creation: Sep 2008
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Handle: RePEc:yor:hectdg:08/23

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Related research
Keywords: informal care; female labour force participation; ECHP; matching; ageing;

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Find related papers by JEL classification:
J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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  1. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, 06. [Downloadable!] (restricted)
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  2. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, vol. 17(6), pages 747-765, December. [Downloadable!] (restricted)
  3. 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)
  4. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
  5. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September. [Downloadable!]
  6. 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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  7. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Richard Blundell & Monica Costa Dias, 2002. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers CWP10/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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  9. 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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