IDEAS home Printed from https://ideas.repec.org/p/tky/fseres/2014cf924.html
   My bibliography  Save this paper

Can Formal Elderly Care Stimulate Female Labor Supply? The Japanese Experience

Author

Listed:
  • Shinya Sugawara

    (Faculty of Economics, the University of Tokyo)

  • Jiro Nakamura

    (Faculty of Economics, Nihon University)

Abstract

   This study analyzes the impacts of the Japanese Long-Term Care Insurance (LTCI), a decade after its launch, with respect to the female labor supply in Japan. The radical program has caused the emergence of markets for various care services apart from permanent institutional care, which is only a major formal care sector in many developed countries. The availability of various formal care services can stimulate female labor supply through a reduction of the burden of informal caregiving. To investigate the impacts of the LTCI, we compare the labor market behavior of females who face requirements for elderly care in their household for three periods before the launch of the LTCI, four years after the launch, and ten years after the launch. Our empirical analysis indicates positive effects of the launch and diffusion of the LTCI on female labor supply. As a result of the LTCI, care for male elders is no longer an obstacle for female labor supply, but care for female elders is still burdensome. We also find that the care requirement reduces the probability of being a regular worker; however, regular workers are more likely to utilize formal care, whereas many nonregular workers provide informal care by themselves.

Suggested Citation

  • Shinya Sugawara & Jiro Nakamura, 2014. "Can Formal Elderly Care Stimulate Female Labor Supply? The Japanese Experience," CIRJE F-Series CIRJE-F-924, CIRJE, Faculty of Economics, University of Tokyo.
  • Handle: RePEc:tky:fseres:2014cf924
    as

    Download full text from publisher

    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2014/2014cf924.pdf
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    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. Hanaoka, Chie & Norton, Edward C., 2008. "Informal and formal care for elderly persons: How adult children's characteristics affect the use of formal care in Japan," Social Science & Medicine, Elsevier, vol. 67(6), pages 1002-1008, September.
    3. Shimizutani, Satoshi & Suzuki, Wataru & Noguchi, Haruko, 2008. "The socialization of at-home elderly care and female labor market participation: Micro-level evidence from Japan," Japan and the World Economy, Elsevier, vol. 20(1), pages 82-96, January.
    4. 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.
    5. Bernard van den Berg & Pol Spauwen, 2006. "Measurement of informal care: an empirical study into the valid measurement of time spent on informal caregiving," Health Economics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-460.
    6. 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.
    7. Lee, Grace H.Y. & Lee, Sing Ping, 2014. "Childcare availability, fertility and female labor force participation in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 32(C), pages 71-85.
    8. K. Bolin & B. Lindgren & P. Lundborg, 2008. "Informal and formal care among single-living elderly in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 393-409.
    9. Shinya Sugawara, 2013. "Firm-driven Management for Longevity Risk: Analysis of Lump-sum Forward Payments in Japanese Nursing Homes," CIRJE F-Series CIRJE-F-908, CIRJE, Faculty of Economics, University of Tokyo.
    10. Jasmin Häcker & Tobias Hackmann, 2012. "Los(T) In Long‐Term Care: Empirical Evidence From German Data 2000–2009," Health Economics, John Wiley & Sons, Ltd., vol. 21(12), pages 1427-1443, December.
    11. Iwamoto, Yasushi & Kohara, Miki & Saito, Makoto, 2010. "On the consumption insurance effects of long-term care insurance in Japan: Evidence from micro-level household data," Journal of the Japanese and International Economies, Elsevier, vol. 24(1), pages 99-115, March.
    12. Bolin, K. & Lindgren, B. & Lundborg, P., 2008. "Your next of kin or your own career?: Caring and working among the 50+ of Europe," Journal of Health Economics, Elsevier, vol. 27(3), pages 718-738, May.
    13. Carmichael, Fiona & Charles, Susan, 2003. "The opportunity costs of informal care: does gender matter?," Journal of Health Economics, Elsevier, vol. 22(5), pages 781-803, September.
    14. Courtney Harold Van Houtven & Norma B. Coe & Meghan Skira, 2010. "Effect of Informal Care on Work, Wages, and Wealth," Working Papers, Center for Retirement Research at Boston College wp2010-22, Center for Retirement Research, revised Dec 2010.
    15. Șerban Georgescu, 2012. "Japan," Conjunctura economiei mondiale / World Economic Studies, Institute for World Economy, Romanian Academy.
    16. Heitmueller, Axel & Inglis, Kirsty, 2007. "The earnings of informal carers: Wage differentials and opportunity costs," Journal of Health Economics, Elsevier, vol. 26(4), pages 821-841, July.
    17. Puhani, Patrick A, 2000. " The Heckman Correction for Sample Selection and Its Critique," Journal of Economic Surveys, Wiley Blackwell, vol. 14(1), pages 53-68, February.
    18. Ogawa, Naohiro & Ermisch, John F, 1996. "Family Structure, Home Time Demands, and the Employment Patterns of Japanese Married Women," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 677-702, October.
    19. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, vol. 17(6), pages 747-765, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:bla:asiapr:v:12:y:2017:i:1:p:95-112 is not listed on IDEAS
    2. Maruyama, Shiko, 2015. "The effect of coresidence on parental health in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 35(C), pages 1-22.
    3. 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.
    4. Geyer, Johannes & Korfhage, Thorben, 2015. "Long-term care reform and the labor supply of household members: Evidence from a quasi-experiment," Ruhr Economic Papers 574, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Yoko Niimi, 2016. "The “Costs” of informal care: an analysis of the impact of elderly care on caregivers’ subjective well-being in Japan," Review of Economics of the Household, Springer, vol. 14(4), pages 779-810, December.
    6. repec:eee:joecag:v:6:y:2015:i:c:p:79-88 is not listed on IDEAS
    7. Nishimura, Y.; Oikawa, M.;, 2017. "Effects of Informal Elderly Care on Labor Supply: Exploitation of Government Intervention on the Supply Side of Elderly Care Market," Health, Econometrics and Data Group (HEDG) Working Papers 17/02, HEDG, c/o Department of Economics, University of York.
    8. Niimi, Yoko, 2017. "Does Providing Informal Elderly Care Hasten Retirement? Evidence from Japan," AGI Working Paper Series 2017-07, Asian Growth Research Institute.
    9. Yamada, Hiroyuki & Shimizutani, Satoshi, 2015. "Labor market outcomes of informal care provision in Japan," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 79-88.
    10. 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.
    11. Oshio, Takashi & Usui, Emiko, 2017. "The effects of providing eldercare on daughters’ employment and mental health in Japan," CIS Discussion paper series 661, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    12. Narimasa Kumagai, 2017. "Distinct impacts of high intensity caregiving on caregivers’ mental health and continuation of caregiving," Health Economics Review, Springer, vol. 7(1), pages 1-14, December.

    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tky:fseres:2014cf924. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CIRJE administrative office). General contact details of provider: http://edirc.repec.org/data/ritokjp.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.