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The kids are alright - labour market effects of unexpected parental hospitalisations in the Netherlands

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  • Rellstab, Sara
  • Bakx, Pieter
  • García-Gómez, Pilar
  • van Doorslaer, Eddy

Abstract

Unexpected negative health shocks of a parent may reduce adult children's labour supply via informal caregiving and stress-induced mental health problems. We link administrative data on labour market outcomes, hospitalisations and family relations for the full Dutch working age population for the years 1999-2008 to evaluate the effect of an unexpected parental hospitalisation on the probability of employment and on conditional earnings. Using an event study difference-in-differences model combined with coarsened exact matching and individual fixed effects, we find no effect of an unexpected parental hospitalisation on either employment or earnings for Dutch men and women, and neither for the full population nor for the subpopulations most likely to become caregivers. These findings suggest that the extensive public coverage of formal long-term care in the Netherlands combined with widespread acceptance of part-time work provides sufficient opportunities to deal with adverse health events of family members without having to compromise one's labour supply.

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  • Rellstab, Sara & Bakx, Pieter & García-Gómez, Pilar & van Doorslaer, Eddy, 2020. "The kids are alright - labour market effects of unexpected parental hospitalisations in the Netherlands," Journal of Health Economics, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:jhecon:v:69:y:2020:i:c:s0167629618304442
    DOI: 10.1016/j.jhealeco.2019.102275
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    Cited by:

    1. Judith Bom & Pieter Bakx & Sara Rellstab, 2022. "Well‐being right before and after a permanent nursing home admission," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2558-2574, December.
    2. Wen, Jiayi & Huang, Haili, 2024. "Parental health penalty on adult children’s employment: Gender differences and long-term consequences," Journal of Health Economics, Elsevier, vol. 95(C).
    3. Sara Rellstab & Pieter Bakx & Pilar Garci‡-G—mez, 2022. "Human Capital Formation: The Effect of a Miscarriage on Mental Health, Labour Market, and Family Outcomes," Tinbergen Institute Discussion Papers 22-027/V, Tinbergen Institute.
    4. Stöckel, Jannis & Bom, Judith, 2022. "Revisiting longer-term health effects of informal caregiving: Evidence from the UK," The Journal of the Economics of Ageing, Elsevier, vol. 21(C).
    5. Wolfgang Frimmel & Martin Halla & Joerg Paetzold & Julia Schmieder, 2020. "Health of Elderly Parents, their Children's Labor Supply, and the Role of Migrant Care Workers," Economics working papers 2020-18, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Felix Glaser & Gerald J. Pruckner, 2023. "A hard pill to swallow? Parental health shocks and children's mental health," Health Economics, John Wiley & Sons, Ltd., vol. 32(12), pages 2768-2800, December.
    7. Bom, Judith & Stöckel, Jannis, 2021. "Is the grass greener on the other side? The health impact of providing informal care in the UK and the Netherlands," Social Science & Medicine, Elsevier, vol. 269(C).
    8. Bom, Judith & Bakx, Pieter & Schut, Frederik & van Doorslaer, Eddy, 2019. "Health effects of caring for and about parents and spouses," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    9. Oskorouchi, Hamid R. & Sousa-Poza, Alfonso & Bloom, David E., 2020. "The Long-Term Cognitive and Schooling Effects of Childhood Vaccinations in China," IZA Discussion Papers 13106, Institute of Labor Economics (IZA).
    10. Wolfgang Frimmel & Martin Halla & Joerg Paetzold & Julia Schmieder, 2020. "Health of Elderly Parents, their Children's Labor Supply, and the Role of Migrant Care Workers," Economics working papers 2020-18, Department of Economics, Johannes Kepler University Linz, Austria.
    11. Jim Been & Anne C. Gielen & Marike Knoef & Gloria Moroni, 2022. "Prolonged worklife among grandfathers: Spillover effects on grandchildren's educational outcomes," Tinbergen Institute Discussion Papers 22-033/V, Tinbergen Institute.
    12. de Roux, Nicolás & Riehl, Evan, 2022. "Disrupted academic careers: The returns to time off after high school," Journal of Development Economics, Elsevier, vol. 156(C).
    13. Jensen, Mathias Fjællegaard & Zhang, Ning, 2024. "Effects of Parental Death on Labor Market Outcomes and Gender Inequalities," IZA Discussion Papers 17127, Institute of Labor Economics (IZA).
    14. Felix Glaser & Rene Wiesinger, 2024. "Life After Loss: The Causal Effect of Parental Death on Daughters' Fertility," Economics working papers 2024-01, Department of Economics, Johannes Kepler University Linz, Austria.
    15. Lorenz Gschwent & Bjorn Hammarfelt & Martin Karlsson & Mathias Kifmann, 2024. "The Rise of Health Economics: Transforming the Landscape of Economic Research," Papers 2410.06313, arXiv.org.
    16. Wolfgang Frimmel & Rene Wiesinger, 2024. "Sick Happens: The Effect of Worker Health Shocks on Coworkers' Employment and Health Behavior," Economics working papers 2024-12, Department of Economics, Johannes Kepler University Linz, Austria.
    17. Marianne Tenand & Pieter Bakx & Bram Wouterse, 2021. "The impact of co-payments for nursing home care on use, health, and welfare," CPB Discussion Paper 430, CPB Netherlands Bureau for Economic Policy Analysis.

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    More about this item

    Keywords

    Labour supply; Parental health shocks; informal care; event study; coarsened exact matching;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • I10 - Health, Education, and Welfare - - Health - - - General

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