Long-term Care Responsibility and its Opportunity Costs
This paper analyzes the relationship between long-term care provision and the average individual wage rate. In addition, the eff ects of the number of hours spent on caregiving on the probability of employment as well as on the number of hours worked are examined. Data from the Survey of Health, Ageing and Retirement (SHARE) of 2004 and 2006 is used to analyze caregiving eff ects on the European labor market. Descriptive statistics show a positive correlation between hours of care and the wage rate for those working. In the regression analysis, sample-selection models combined with instrumental-variable estimation are used to estimate the causal eff ects of hours of care on wages. The results illustrate that care for parents has a large negative impact on the individual’s wage rate. Test results show that controlling for sample selection is reasonable. Finally, the probability of employment is only decreased in the female sample. Although the hours worked are not signicantly affected.
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- 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).
- repec:zbw:rwirep:0152 is not listed on IDEAS
- Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- repec:zbw:rwidps:0039 is not listed on IDEAS
- Meng, Annika, 2009. "Informal Home Care and Labor Force Participation of Household Members," Ruhr Economic Papers 152, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
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