The Impact of Informal Caregiving Intensity on Women's Retirement in the United States
With increasing pressure on retirement-aged individuals to provide informal care while remaining in the workforce, it is important to understand the impact of informal care demands on individuals' retirement decisions. This paper explores whether different intensities of informal caregiving can lead to retirement for women in the United States. Using the National Longitudinal Survey of Mature Women, we control for time-invariant heterogeneity and for time-varying sources of bias with a two-stage least squares model with fixed effects. We find that there is no significant effect on retirement for all informal caregivers, but there are important incremental effects of caregiving intensity. Women who provide at least 20 hours of informal care per week are 3 percentage points more likely to retire relative to other women. We also find that when unobserved heterogeneity is controlled for with fixed effects, we cannot reject exogeneity. These findings suggest that policies encouraging both informal care and later retirement may not be feasible without allowances for flexible scheduling or other supports for working caregivers.
|Date of creation:||Apr 2014|
|Date of revision:|
|Publication status:||Published Online, April 2014|
|Contact details of provider:|| Postal: 155 College Street, 4th Floor, Toronto, ON M5T 3M6|
Web page: http://www.canadiancentreforhealtheconomics.ca
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blau, David & Riphahn, Regina, 1998.
"Labour Force transitions of Older Married Couples in Germany,"
CEPR Discussion Papers
1911, C.E.P.R. Discussion Papers.
- Blau, David M. & Riphahn, Regina T., 1999. "Labor force transitions of older married couples in Germany," Labour Economics, Elsevier, vol. 6(2), pages 229-252, June.
- Blau, David M. & Riphahn, Regina T., 1998. "Labor Force Transitions of Older Married Couples in Germany," IZA Discussion Papers 5, Institute for the Study of Labor (IZA).
- Pozzebon, Silvana & Mitchell, Olivia S, 1989.
"Married Women's Retirement Behavior,"
Journal of Population Economics,
Springer, vol. 2(1), pages 39-53.
- Heitmueller, Axel, 2007.
"The chicken or the egg?: Endogeneity in labour market participation of informal carers in England,"
Journal of Health Economics,
Elsevier, vol. 26(3), pages 536-559, May.
- Heitmueller, Axel, 2004. "The Chicken or the Egg? Endogeneity in Labour Market Participation of Informal Carers in England," IZA Discussion Papers 1366, Institute for the Study of Labor (IZA).
- Susan Ettner, 1995. "The impact of “parent care” on female labor supply decisions," Demography, Springer, vol. 32(1), pages 63-80, February.
- Mark Y. An & Bent Jesper Christensen & Nabanita Datta Gupta, 2004. "Multivariate mixed proportional hazard modelling of the joint retirement of married couples," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(6), pages 687-704.
- Laura Crespo & Pedro Mira, 2010. "Caregiving To Elderly Parents And Employment Status Of European Mature Women," Working Papers wp2010_1007, CEMFI.
- William G. Gale, 1998. "The Effects of Pensions on Household Wealth: A Reevaluation of Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 706-723, August.
- Jacobs, Josephine C. & Laporte, Audrey & Van Houtven, Courtney H. & Coyte, Peter C., 2014. "Caregiving intensity and retirement status in Canada," Social Science & Medicine, Elsevier, vol. 102(C), pages 74-82.
- Annika Meng, 2012. "Informal Caregiving and the Retirement Decision," German Economic Review, Verein für Socialpolitik, vol. 13(3), pages 307-330, 08.
- Francisco Alvarez-Cuadrado & Ngo Van Long, 2008.
"The Relative Income Hypothesis,"
CIRANO Working Papers
- Thierry Debrand & Nicolas Sirven, 2009. "What are the Motivations of Pathways to Retirement in Europe: Individual, Familial, Professional Situation or Social Protection Systems?," Working Papers DT28, IRDES institut for research and information in health economics, revised Oct 2009.
- 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.
- Douglas Staiger & James H. Stock, 1994.
"Instrumental Variables Regression with Weak Instruments,"
NBER Technical Working Papers
0151, National Bureau of Economic Research, Inc.
- Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
- Laura Crespo, 2006. "Caring For Parents And Employment Status Of European Mid-Life Women," Working Papers wp2006_0615, CEMFI.
- Carmichael, Fiona & Charles, Susan, 2003. "The opportunity costs of informal care: does gender matter?," Journal of Health Economics, Elsevier, vol. 22(5), pages 781-803, September.
- Fiona Carmichael & Susan Charles, 2003. "Benefit payments, informal care and female labour supply," Applied Economics Letters, Taylor & Francis Journals, vol. 10(7), pages 411-415.
- K. Bolin & B. Lindgren & P. Lundborg, 2007.
"Your Next of Kin or your Own Career? Caring and Working among the 50+ of Europe,"
Tinbergen Institute Discussion Papers
07-032/3, Tinbergen Institute.
- Bolin, K. & Lindgren, B. & Lundborg, P., 2008. "Your next of kin or your own career?: Caring and working among the 50+ of Europe," Journal of Health Economics, Elsevier, vol. 27(3), pages 718-738, May.
- Josephine Jacobs & Courtney Van Houtven & Audrey Laporte & Peter Coyte, 2014. "Baby Boomer caregivers in the workforce: Do they fare better or worse than their predecessors?," Working Papers 140001, Canadian Centre for Health Economics.
- 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.
- Lilly, Meredith B. & Laporte, Audrey & Coyte, Peter C., 2010. "Do they care too much to work? The influence of caregiving intensity on the labour force participation of unpaid caregivers in Canada," Journal of Health Economics, Elsevier, vol. 29(6), pages 895-903, December.
- V. Spike Peterson, 2013. "Informal work," Chapters, in: Handbook of Research on Gender and Economic Life, chapter 11, pages 169-182 Edward Elgar Publishing.
When requesting a correction, please mention this item's handle: RePEc:cch:wpaper:140008. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Adrian Rohit Dass)
If references are entirely missing, you can add them using this form.