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Caregivers in the Family: Daughters, Sons and Social Norms

Listed author(s):
  • Barigozzi, Francesca

    ()

    (University of Bologna)

  • Cremer, Helmuth

    ()

    (Toulouse School of Economics)

  • Roeder, Kerstin

    ()

    (University of Augsburg)

Daughters are the principal caregivers of their dependent parents. In this paper, we study long-term care (LTC) choices by bargaining families with mixed- or same-gender siblings. LTC care can be provided either informally by children, or formally at home or in an institution. A social norm implies that daughters suffer a psychological cost when they provide less informal care than the average child. We show that the laissez-faire (LF) and the utilitarian first-best (FB) differ for two reasons. First, because informal care imposes a negative externality on daughters via the social norm, too much informal care is provided in LF. Second, the weights children and parents have in the family bargaining problem might differ in general from their weights in social welfare. We show that the FB allocation can be achieved through a system of subsidies on formal home and institutional care. Except when children and parents have equal bargaining weights these subsidies are gender-specific and reflect Pigouvian as well as "paternalistic" considerations.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 10862.

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Length: 32 pages
Date of creation: Jun 2017
Handle: RePEc:iza:izadps:dp10862
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  1. F. Barigozzi & H. Cremer & K. Roeder, 2017. "Women's career choices, social norms and child care policies," Working Papers wp1094, Dipartimento Scienze Economiche, Universita' di Bologna.
  2. CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, "undated". "The economics of long-term care: a survey," CORE Discussion Papers RP 2466, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, vol. 17(6), pages 747-765, December.
  4. Canta, Chiara & Cremer, Helmuth, 2017. "Long-term care policy with nonlinear strategic bequests," TSE Working Papers 17-839, Toulouse School of Economics (TSE).
  5. Jakobsson, Niklas & Kotsadam, Andreas & Syse, Astri & Øien, Henning, 2016. "Gender bias in public long-term care? A survey experiment among care managers," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 126-138.
  6. Stabile, Mark & Laporte, Audrey & Coyte, Peter C., 2006. "Household responses to public home care programs," Journal of Health Economics, Elsevier, vol. 25(4), pages 674-701, July.
  7. Andreas Kotsadam, 2011. "Does Informal Eldercare Impede Women's Employment? The Case of European Welfare States," Feminist Economics, Taylor & Francis Journals, vol. 17(2), pages 121-144.
  8. Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November.
  9. Charles, Kerwin Kofi & Sevak, Purvi, 2005. "Can family caregiving substitute for nursing home care?," Journal of Health Economics, Elsevier, vol. 24(6), pages 1174-1190, November.
  10. Nicole M Fortin, 2005. "Gender Role Attitudes and the Labour-market Outcomes of Women across OECD Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 21(3), pages 416-438, Autumn.
  11. Canta, Chiara & Cremer, Helmuth, 2017. "Long-term care policy with nonlinear strategic bequests," IDEI Working Papers 878, Institut d'Économie Industrielle (IDEI), Toulouse.
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