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Informal And Formal Care In Europe

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  • Tarja Viitanen

    () (Department of Economics, The University of Sheffield)

Abstract

Government expenditure on formal residential care and home-help services for the elderly significantly reduces 45-59 year old women’s informal care-giving affecting both the extensive and the intensive margin. Allowing for country fixed-effects and country-specific trends and correcting for attrition, the estimates – based on the European Community Household Panel – imply that a 1000 Euro increase in the government expenditure on formal residential care and home-help services for the elderly decreases the probability of informal care-giving outside of the caregiver’s household by 6 percentage points. Formal care substitutes for informal care that is undertaken outside of the carer’s own household, but does not substitute for intergenerational household formation. A simulation exercise shows that an increase in government formal care expenditure is a cost-effective way of increasing the labour force participation rates.
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Suggested Citation

  • Tarja Viitanen, 2007. "Informal And Formal Care In Europe," Working Papers 2007010, The University of Sheffield, Department of Economics, revised Jun 2007.
  • Handle: RePEc:shf:wpaper:2007010
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    File URL: http://www.shef.ac.uk/content/1/c6/07/11/66/SERP2007010.pdf
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    File URL: http://www.shef.ac.uk/content/1/c6/07/11/66/SERP2007010.pdf
    File Function: Revised version, 2007
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    References listed on IDEAS

    as
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    6. J. Jenson & Stéphane Jacobzone, 2000. "Care Allowances for the Frail Elderly and Their Impact on Women Care-Givers," OECD Labour Market and Social Policy Occasional Papers 41, OECD Publishing.
    7. Hoerger, Thomas J & Picone, Gabriel A & Sloan, Frank A, 1996. "Public Subsidies, Private Provision of Care and Living Arrangements of the Elderly," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 428-440, August.
    8. Tennille J. Checkovich & Steven Stern, 2002. "Shared Caregiving Responsibilities of Adult Siblings with Elderly Parents," Journal of Human Resources, University of Wisconsin Press, vol. 37(3), pages 441-478.
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    Cited by:

    1. Roquebert, Q. & Tenand, M., 2016. "Pay less, consume more? Estimating the price elasticity of demand for home care services of the disabled elderly," Health, Econometrics and Data Group (HEDG) Working Papers 16/16, HEDG, c/o Department of Economics, University of York.
    2. Cristiano Perugini & Ekaterina Selezneva, 2015. "Labour market institutions, crisis and gender earnings gap in Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 23(3), pages 517-564, July.
    3. Carmichael, F. & Charles, S. & Hulme, C., 2010. "Who will care? Employment participation and willingness to supply informal care," Journal of Health Economics, Elsevier, vol. 29(1), pages 182-190, January.
    4. Sergi Jiménez-Martín & Cristina Vilaplana Prieto, 2015. "Do Spanish Informal Caregivers Come to the Rescue of Dependent People with Formal Care Unmet Needs?," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(2), pages 243-259.
    5. Siciliani Luigi, 2013. "The Economics of Long-Term Care," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 343-375, August.
    6. Louis Arnault & Andreas Goltz, 2017. "Can formal home care reduce the burden of informal care for elderly dependents? Evidence from France," Working Papers hal-01458362, HAL.
    7. repec:dau:papers:123456789/13164 is not listed on IDEAS
    8. Aristei, David & Perugini, Cristiano, 2015. "The drivers of income mobility in Europe," Economic Systems, Elsevier, vol. 39(2), pages 197-224.
    9. Bonsang, Eric, 2009. "Does informal care from children to their elderly parents substitute for formal care in Europe?," Journal of Health Economics, Elsevier, vol. 28(1), pages 143-154, January.
    10. Sarma, Sisira & Hawley, Gordon & Basu, Kisalaya, 2009. "Transitions in living arrangements of Canadian seniors: Findings from the NPHS longitudinal data," Social Science & Medicine, Elsevier, vol. 68(6), pages 1106-1113, March.
    11. Ruud ter Meulen & Katharine Wright, 2010. "The Role of Family Solidarity: Ethical and Social Issues," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(2), pages 13-17, 07.
    12. Fontaine, Roméo, 2011. "Le soutien familial aux personnes âgées dépendantes : Analyses micro-économétriques des comportements individuels et familiaux de prise en charge," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/7370 edited by Gramain, Agnès & Wittwer, Jérôme, March.
    13. Haizhen Mou & Stanley L. Winer, 2012. "Fiscal Incidence when both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home-Care for the Elderly," CESifo Working Paper Series 3731, CESifo Group Munich.
    14. Sergi Jiménez-Martín & Cristina Prieto, 2012. "The trade-off between formal and informal care in Spain," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(4), pages 461-490, August.
    15. Emmanouil Mentzakis & Paul McNamee & Mandy Ryan, 2009. "Who cares and how much: exploring the determinants of co-residential informal care," Review of Economics of the Household, Springer, vol. 7(3), pages 305-305, September.
    16. Ciani, Emanuele, 2012. "Informal adult care and caregivers' employment in Europe," Labour Economics, Elsevier, vol. 19(2), pages 155-164.
    17. repec:dau:papers:123456789/10723 is not listed on IDEAS

    More about this item

    Keywords

    informal care; formal care; ECHP; attrition bias;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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