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Family bargaining and the gender gap in informal care

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  • Cremer, Helmuth
  • Canta, Chiara

Abstract

We study the optimal long-term care policy when informal care can be provided by children in exchange for monetary transfers by their elderly parents. We consider a bargaining model with single-child families. Daughters have a lower labor market wage and a lower bargaining power within the family with respect to sons. Consequently, they provide more informal care and have lower welfare in the laissez-faire (although not necessarily lower transfers). The first best involves redistribution from families with sons to families with daughters and can be implemented by a gender-specific schedule of public LTC benefits and transfers to working children. If the policy is restricted to be gender neutral, we find that the informal care provided by daughters should be distorted up to enhance redistribution from families with sons to families with daughters. Transfers within the family should be distorted in both types of families.

Suggested Citation

  • Cremer, Helmuth & Canta, Chiara, 2022. "Family bargaining and the gender gap in informal care," CEPR Discussion Papers 17539, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17539
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    Cited by:

    1. is not listed on IDEAS
    2. Akira Yakita, 2024. "Old-age support policy and fertility with strategic bequest motives," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-23, June.

    More about this item

    Keywords

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    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I19 - Health, Education, and Welfare - - Health - - - Other

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