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Unpaid eldercare and its impact on the US labor supply

Author

Listed:
  • Tanima Ahmed

    (World Bank)

  • Maria S. Floro

    (American University)

Abstract

Globally, the dependency ratio is rising due to increase in aging population. Individuals, especially women are challenged when choosing between participating in the labor market and providing care. Using 2011-2017 American Time Use Survey data for a subsample of individuals aged 25-61 years, we examine the effect of frequent eldercare provision on labor force participation in the US using bivariate probit instrumental variable approach. Our findings suggest that unpaid eldercare performed frequently reduces labor force participation. Female frequent providers are likely to have lower labor force participation compared to their male counterparts. Robustness and sensitivity checks confirm these findings.

Suggested Citation

  • Tanima Ahmed & Maria S. Floro, 2023. "Unpaid eldercare and its impact on the US labor supply," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 60(1), pages 123-157, June.
    • Handle: RePEc:phs:prejrn:v:60:y:2023:i:1:p:123-157
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    File URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/1038/962
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    More about this item

    Keywords

    aging; eldercare; labor supply; United States;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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