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Informal Care and Labor Supply

Author

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  • Fevang, Elisabeth

    (Ragnar Frisch Centre for Economic Research)

  • Kverndokk, Snorre

    (Ragnar Frisch Centre for Economic Research)

  • Røed, Knut

    (Ragnar Frisch Centre for Economic Research)

Abstract

Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring's labor market activity. The employment propensity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent's death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the parent's demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.

Suggested Citation

  • Fevang, Elisabeth & Kverndokk, Snorre & Røed, Knut, 2008. "Informal Care and Labor Supply," IZA Discussion Papers 3717, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp3717
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    Cited by:

    1. Loken, Katrine Vellesen & Lundberg, Shelly & Riise, Julie, 2014. "Lifting the Burden: State Care of the Elderly and Labor Supply of Adult Children," IZA Discussion Papers 8267, Institute of Labor Economics (IZA).
    2. Marco Angrisani & Michael D. Hurd & Erik Meijer & Andrew M. Parker & Susann Rohwedder, 2013. "Labor Force Transitions at Older Ages: The Roles of Work Environment and Personality," Working Papers wp295, University of Michigan, Michigan Retirement Research Center.
    3. Markussen, Simen & Røed, Knut & Røgeberg, Ole J. & Gaure, Simen, 2011. "The anatomy of absenteeism," Journal of Health Economics, Elsevier, vol. 30(2), pages 277-292, March.
    4. 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.
    5. Mozhaeva, Irina, 2021. "Informal caregiving and work: A high price to pay. The case of Baltic States," The Journal of the Economics of Ageing, Elsevier, vol. 19(C).
    6. Leigh, Andrew, 2010. "Informal care and labor market participation," Labour Economics, Elsevier, vol. 17(1), pages 140-149, January.
    7. Fevang, Elisabeth & Kverndokk, Snorre & Røed, Knut, 2009. "A model for supply of informal care to elderly parents," HERO Online Working Paper Series 2008:12, University of Oslo, Health Economics Research Programme.
    8. Kotsadam, Andreas, 2009. "Effects of informal eldercare on female labor supply in different European welfare states," Working Papers in Economics 353, University of Gothenburg, Department of Economics.
    9. Laura Hospido & Gema Zamarro, 2014. "Retirement patterns of couples in Europe," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    10. Andreas Eder, 2016. "The impact of inheritances on the retirement behavior of older Europeans," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 43(2), pages 299-331, May.
    11. Cristina Vilaplana Prieto & Sergi Jiménez-Martín, 2015. "Unmet needs in formal care: kindling the spark for caregiving behavior," International Journal of Health Economics and Management, Springer, vol. 15(2), pages 153-184, June.

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    More about this item

    Keywords

    inheritance; elderly care; labor supply; ageing;
    All these keywords.

    JEL classification:

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

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