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Working Mums and Informal Care Givers: The Anticipation Effect

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  • Korn Evelyn

    (University of Marburg, Universitaetsstrasse 24, 35032 Marburg, Germany)

  • Wrede Matthias

    (University of Erlangen-Nuremberg, Findelgasse 7, 90402 Nuremberg, Germany)

Abstract

Fertility and the provision of long-term care are connected by an aspect that has not received attention so far: both are time consuming activities that can be produced within the household or bought at the market and are, thus, connected through the intertemporal budget constraint of the household that accounts for time and money. This paper models that link and analyzes the effect of intervention in the long-term-care market on female labor-market related decisions. It shows that women’s fertility and their labor supply when young are affected by such policies. The overall effect can be decomposed into an opportunity-cost effect and a consumption-smoothing effect that each impact fertility as well as labor supply in opposite directions. Using survey data, the paper provides some evidence that in the member states of the European Union the consumption-smoothing effect is dominant.

Suggested Citation

  • Korn Evelyn & Wrede Matthias, 2013. "Working Mums and Informal Care Givers: The Anticipation Effect," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 473-498, July.
    • Handle: RePEc:bpj:bejeap:v:14:y:2013:i:2:p:473-498:n:3
    DOI: 10.1515/bejeap-2012-0023
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    References listed on IDEAS

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    1. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
    2. Michele BOLDRIN & Mariacristina DE NARDI & Larry E. JONES, 2015. "Fertility and Social Security," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 81(3), pages 261-299, September.
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    Cited by:

    1. Pestieau, Pierre & Ponthiere, Gregory, 2016. "Long-term care and births timing," Journal of Health Economics, Elsevier, vol. 50(C), pages 340-357.
    2. Yasuoka, Masaya, 2020. "Subsidies for elderly care with a pay-as-you-go pension," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    3. Masaya Yasuoka, 2019. "Should Public Elderly Care Be Provided?," Economics Bulletin, AccessEcon, vol. 39(1), pages 564-570.
    4. Masaya Yasuoka, 2019. "Elderly care service in an aging society," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 18-34, January.
    5. OGURO Kazumasa & ISHIDA Ryo & YASUOKA Masaya, 2020. "Elderly Care Supply Systems and Services which Decrease Elderly Care Requirements," Discussion papers 20020, Research Institute of Economy, Trade and Industry (RIETI).

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