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A dynamic analysis of informal care and employment in England

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  • Michaud, Pierre-Carl
  • Heitmueller, Axel
  • Nazarov, Zafar

Abstract

This paper analyzes the dynamics in employment and informal care outcomes of women in England. To this end, we develop a dynamic model to describe pathways leading to a negative correlation between informal care and employment in a cross-section. The model allows for different types of caregiving, correlated permanent unobserved heterogeneity and initial sorting. The model is estimated on data from 6 waves of the BHPS 2000-2005. Our findings suggest modest feedback effects. We find a negative effect of co-residential caregiving on future employment and a negative effect of employment on future co-residential and extra-residential caregiving. We also find evidence of positive state-dependence in caregiving although most of the persistence in such activities is related to unobserved heterogeneity rather than state-dependence.

Suggested Citation

  • Michaud, Pierre-Carl & Heitmueller, Axel & Nazarov, Zafar, 2010. "A dynamic analysis of informal care and employment in England," Labour Economics, Elsevier, vol. 17(3), pages 455-465, June.
  • Handle: RePEc:eee:labeco:v:17:y:2010:i:3:p:455-465
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    1. Maxim Engers & Steven Stern, 2002. "Long-Term Care and Family Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 73-114, February.
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    Cited by:

    1. repec:eee:jhecon:v:56:y:2017:i:c:p:1-18 is not listed on IDEAS
    2. Andreas Kotsadam, 2012. "The employment costs of caregiving in Norway," International Journal of Health Economics and Management, Springer, vol. 12(4), pages 269-283, December.
    3. repec:bla:ecorec:v:93:y:2017:i:302:p:395-419 is not listed on IDEAS
    4. Heger, Dörte & Korfhage, Thorben, 2017. "Does the negative effect of caregiving on work persist over time?," Ruhr Economic Papers 703, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Nguyen, Ha Trong & Connelly, Luke Brian, 2014. "The effect of unpaid caregiving intensity on labour force participation: Results from a multinomial endogenous treatment model," Social Science & Medicine, Elsevier, vol. 100(C), pages 115-122.
    6. Ha Trong Nguyen & Luke B. Connelly, 2017. "The Dynamics of Informal Care Provision in an Australian Household Panel Survey: Previous Work Characteristics and Future Care Provision," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 395-419, September.
    7. Van Houtven, Courtney Harold & Coe, Norma B. & Skira, Meghan M., 2013. "The effect of informal care on work and wages," Journal of Health Economics, Elsevier, vol. 32(1), pages 240-252.
    8. Meghan M. Skira, 2015. "Dynamic Wage And Employment Effects Of Elder Parent Care," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56, pages 63-93, February.
    9. repec:eee:joecag:v:6:y:2015:i:c:p:89-101 is not listed on IDEAS
    10. Carmichael, Fiona & Ercolani, Marco G., 2016. "Unpaid caregiving and paid work over life-courses: Different pathways, diverging outcomes," Social Science & Medicine, Elsevier, vol. 156(C), pages 1-11.
    11. Niimi, Yoko, 2017. "Does Providing Informal Elderly Care Hasten Retirement? Evidence from Japan," AGI Working Paper Series 2017-07, Asian Growth Research Institute.
    12. repec:eee:joecag:v:6:y:2015:i:c:p:79-88 is not listed on IDEAS
    13. Nishimura, Y.; Oikawa, M.;, 2017. "Effects of Informal Elderly Care on Labor Supply: Exploitation of Government Intervention on the Supply Side of Elderly Care Market," Health, Econometrics and Data Group (HEDG) Working Papers 17/02, HEDG, c/o Department of Economics, University of York.
    14. Jacobs, Josephine C. & Van Houtven, Courtney H. & Laporte, Audrey & Coyte, Peter C., 2015. "Baby Boomer caregivers in the workforce: Do they fare better or worse than their predecessors?," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 89-101.
    15. Takashi Oshio & Emiko Usui, 2017. "Informal parental care and female labour supply in Japan," Applied Economics Letters, Taylor & Francis Journals, vol. 24(9), pages 635-638, May.
    16. repec:eee:hapoch:v1_951 is not listed on IDEAS
    17. Bauer, Jan Michael & Sousa-Poza, Alfonso, 2015. "Impacts of Informal Caregiving on Caregiver Employment, Health, and Family," IZA Discussion Papers 8851, Institute for the Study of Labor (IZA).
    18. Yamada, Hiroyuki & Shimizutani, Satoshi, 2015. "Labor market outcomes of informal care provision in Japan," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 79-88.
    19. David C. Grabowski & Edward C. Norton & Courtney H. Van Houtven, 2012. "Informal Care," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 30 Edward Elgar Publishing.
    20. Mark L. Bryan, 2012. "Access to Flexible Working and Informal Care," Scottish Journal of Political Economy, Scottish Economic Society, vol. 59(4), pages 361-389, September.
    21. Schmitz, Hendrik & Westphal, Matthias, 2017. "Informal care and long-term labor market outcomes," Journal of Health Economics, Elsevier, vol. 56(C), pages 1-18.
    22. Mazzotta, Fernanda & Bettio, Francesca & Zigante, Valentina, 2018. "And Thou Shalt Honor: children’s caregiving, work and religion," GLO Discussion Paper Series 202, Global Labor Organization (GLO).
    23. C. Katharina Spieß, 2011. "Vereinbarkeit von Familie und Beruf – wie wirksam sind deutsche „Care Policies“?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 12(s1), pages 4-27, May.

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    Keywords

    Caregiving Aging Dynamic models;

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