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Dynamic Wage and Employment Effects of Elder Parent Care

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  • Meghan Skira

    (University of Georgia)

Abstract

This paper formulates and estimates a dynamic discrete choice model of elder parent care and work to analyze how caregiving affects a woman's current and future labor force participation and wages. The model incorporates parental health changes, human capital accumulation, and job offer availability. The estimates indicate that women face low probabilities of returning to work or increasing work hours after a caregiving spell. I use the estimated model to simulate the caregiving, employment, and welfare effects of a longer unpaid work leave than currently available under the Family and Medical Leave Act, a paid leave, and a caregiver allowance.

Suggested Citation

  • Meghan Skira, 2013. "Dynamic Wage and Employment Effects of Elder Parent Care," 2013 Meeting Papers 79, Society for Economic Dynamics.
  • Handle: RePEc:red:sed013:79
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    References listed on IDEAS

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    1. Knoef, Marike & Kooreman, Peter, 2011. "The Effects of Cooperation: A Structural Model of Siblings' Caregiving Interactions," IZA Discussion Papers 5733, Institute for the Study of Labor (IZA).
    2. Aguirregabiria, Victor & Mira, Pedro, 2010. "Dynamic discrete choice structural models: A survey," Journal of Econometrics, Elsevier, vol. 156(1), pages 38-67, May.
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    5. David Casado-Marín & Pilar García-Gómez & Ángel López-Nicolás, 2011. "Informal care and labour force participation among middle-aged women in Spain," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 2(1), pages 1-29, March.
    6. Spieß, Christa Katharina & Schneider, A. Ulrike, 2003. "Interactions between care-giving and paid work hours among European midlife women, 1994 to 1996," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 41-68.
    7. Michaud, Pierre-Carl & Heitmueller, Axel & Nazarov, Zafar, 2010. "A dynamic analysis of informal care and employment in England," Labour Economics, Elsevier, vol. 17(3), pages 455-465, June.
    8. 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.
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    13. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, May.
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    16. van der Klaauw, Wilbert & Wolpin, Kenneth I., 2008. "Social security and the retirement and savings behavior of low-income households," Journal of Econometrics, Elsevier, vol. 145(1-2), pages 21-42, July.
    17. David Byrne & Michelle S. Goeree & Bridget Hiedemann & Steven Stern, 2009. "Formal Home Health Care, Informal Care, And Family Decision Making," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(4), pages 1205-1242, November.
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    Citations

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    Cited by:

    1. Norma B. Coe & Jing Guo & R. Tamara Konetzka & Courtney Harold Van Houtven, 2016. "What is the Marginal Benefit of Payment-Induced Family Care?," NBER Working Papers 22249, National Bureau of Economic Research, Inc.
    2. repec:bla:ecorec:v:93:y:2017:i:302:p:395-419 is not listed on IDEAS
    3. Johannes Geyer & Thorben Korfhage, 2015. "Long-Term Care Reform and the Labor Supply of Household Members: Evidence from a Quasi-Experiment," SOEPpapers on Multidisciplinary Panel Data Research 785, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Joan Costa-Font & Martin Karlsson & Henning Øien, 2015. "Informal Care and the Great Recession," CINCH Working Paper Series 1502, Universitaet Duisburg-Essen, Competent in Competition and Health, revised Feb 2015.
    5. Michelle Sovinsky & Steven Stern, 2016. "Dynamic modelling of long-term care decisions," Review of Economics of the Household, Springer, vol. 14(2), pages 463-488, June.
    6. Maria Rosaria Marino & Marzia Romanelli & Martino Tasso, 2016. "Women at work: the impact of welfare and fiscal policies in a dynamic labor supply model," Temi di discussione (Economic working papers) 1084, Bank of Italy, Economic Research and International Relations Area.
    7. Ha Trong Nguyen & Luke B. Connelly, 2017. "The Dynamics of Informal Care Provision in an Australian Household Panel Survey: Previous Work Characteristics and Future Care Provision," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 395-419, September.
    8. Andrew Beauchamp & Geoffrey Sanzenbacher & Shannon Seitz & Meghan Skira, 2014. "Deadbeat Dads," Boston College Working Papers in Economics 859, Boston College Department of Economics.
    9. Geyer, Johannes & Haan, Peter & Korfhage, Thorben, 2015. "Indirect fiscal effects of long-term care insurance," Ruhr Economic Papers 584, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. Heger, Dörte & Korfhage, Thorben, 2017. "Does the negative effect of caregiving on work persist over time?," Ruhr Economic Papers 703, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    11. Geyer, J.; Korfhage, T.;, 2017. "Long-term care reform and the labor supply of informal caregivers – evidence from a quasi-experiment," Health, Econometrics and Data Group (HEDG) Working Papers 17/20, HEDG, c/o Department of Economics, University of York.
    12. repec:eee:hapoch:v1_951 is not listed on IDEAS
    13. Joan Costa-Font & Sergi Jiménez-Martín & Cristina Vilaplana-Prieto, 2016. "Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers," Working Papers 2016-08, FEDEA.
    14. Raab, Roman, 2017. "Retirement and Informal Care-giving: Behavioral Patterns among Older Workers," Working Papers 2017-08, Joint Research Centre, European Commission (Ispra site).
    15. Anthony A. Smith, Jr. & Michael Keane, 2004. "Generalized Indirect Inference for Discrete Choice Models," Econometric Society 2004 North American Winter Meetings 512, Econometric Society.
    16. Jeon, Sung-Hee & Pohl, R. Vincent, 2017. "Health and work in the family: Evidence from spouses’ cancer diagnoses," Journal of Health Economics, Elsevier, vol. 52(C), pages 1-18.
    17. 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.
    18. Schmitz, Hendrik & Westphal, Matthias, 2016. "Informal Care and Long-term Labor Market Outcomes," Annual Conference 2016 (Augsburg): Demographic Change 145835, Verein für Socialpolitik / German Economic Association.
    19. P.L. de Zwart & P. Bakx & E.K.A. van Doorslaer, 2016. "Will you still need me, will you still feed me when I’m 64? The Health Impact of Caregiving," Tinbergen Institute Discussion Papers 16-106/V, Tinbergen Institute.
    20. Heger, Dörte & Korfhage, Thorben, 2016. "Care choices in Europe: To each according to his needs?," Ruhr Economic Papers 649, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.

    More about this item

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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