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Does providing informal elderly care hasten retirement? Evidence from Japan

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  • Yoko Niimi

Abstract

This paper examines the implications of providing care to elderly parents for adult children's retirement plans using micro data from a Japanese survey. We find no significant effect of caregiving on family caregivers’ planned retirement age if we do not take into account caregiving intensity but find a negative and significant effect on retirement plans for intensive caregivers, particularly among women. These findings suggest that relying on family members to provide elderly care can pose a serious challenge to the ongoing efforts of the government to promote the labor supply of women and the elderly as a way of addressing the shrinkage of the working‐age population in Japan. The estimation results suggest that ensuring access to formal care services can help family members reconcile their paid work with caregiving requirements, thereby alleviating the adverse effect of caregiving on their retirement plans. The results also suggest that the financial burden of formal care services could require caregivers to postpone retirement in some cases.

Suggested Citation

  • Yoko Niimi, 2018. "Does providing informal elderly care hasten retirement? Evidence from Japan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1039-1062, August.
  • Handle: RePEc:bla:rdevec:v:22:y:2018:i:3:p:1039-1062
    DOI: 10.1111/rode.12395
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    Cited by:

    1. Fischer, Björn & Müller, Kai-Uwe, 2020. "Time to care? The effects of retirement on informal care provision," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics.
    2. Björn Fischer & Kai-Uwe Müller, 2019. "Time to Care? The Effects of Retirement on Informal Care Provision," Discussion Papers of DIW Berlin 1809, DIW Berlin, German Institute for Economic Research.
    3. Julien Bergeot & Roméo Fontaine, 2020. "The heterogeneous effect of retirement on informal care behavior," Health Economics, John Wiley & Sons, Ltd., vol. 29(10), pages 1101-1116, October.
    4. Fischer, Björn & Müller, Kai-Uwe, 2020. "Time to care? The effects of retirement on informal care provision," Journal of Health Economics, Elsevier, vol. 73(C).
    5. Giuseppe Croce & Andrea Ricci & Giuliana Tesauro, 2019. "Pensions reforms, workforce ageing and firm-provided welfare," Applied Economics, Taylor & Francis Journals, vol. 51(32), pages 3480-3497, July.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies

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