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Caring For Carers? The Effect of Public Subsidies on the Well-Being of Unpaid Carers

Author

Listed:
  • Joan Costa-Font
  • Francesco D’Amico
  • Cristina Vilaplana-Prieto

Abstract

We study the effect of long-term care subsidies and supports on the well-being of unpaid caregivers. We draw on evidence from a policy intervention, which universalized previously means-tested caregiving supports in Scotland, known as free personal care (FPC). We document causal evidence of an increase in the well-being (happiness) of unpaid carers after the introduction of FPC. Our estimates suggest economically relevant improvements in happiness (12 percentage point increase in subjective well-being) among caregivers exposed to FPC and who provide at least 35 hours of care per week. Consistently, these results are larger among women and non-actively employed caregivers (17 percentage point increase in happiness). Estimates are not driven by selection into caregiving; they are explained by income effects of FPC among caregivers.

Suggested Citation

  • Joan Costa-Font & Francesco D’Amico & Cristina Vilaplana-Prieto, 2023. "Caring For Carers? The Effect of Public Subsidies on the Well-Being of Unpaid Carers," American Journal of Health Economics, University of Chicago Press, vol. 9(4), pages 487-522.
    • Handle: RePEc:ucp:amjhec:doi:10.1086/723539
    DOI: 10.1086/723539
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    Cited by:

    1. Joan Costa-Font & Sergi Jiménez & Cristina Vilaplana Prieto & Analía Viola, 2022. "Long-term Care in Spain," Studies on the Spanish Economy eee2022-23, FEDEA.

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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