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Labour and income effects of caregiving across Europe: an evaluation using matching techniques

Author

Listed:
  • David Casado-Marín
  • Pilar García-Gómez
  • Ángel López-Nicolás

Abstract

This paper offers evidence on the effects of caregiving (i.e. looking after a dependent person within or outside the household) on labour outcomes such as employment, full time employment (conditional on employment), and income for women aged between 30 and 60 across different European countries. It does so by exploiting data from the European Community Household Panel (1994-2001) in order to match women who have become caregivers with “control” women who are deemed to be comparable in all relevant characteristics and compute a non-parametric measure of the effect of becoming a caregiver on the outcomes mentioned above. Our results suggest that, for women who are working before becoming a caregiver there is no statistically significant change in the chances of being employed. However, in the case of women who were not working prior to becoming a caregiver, there is a statistically significant decrease in the chances of entering employment. We also detect a negative and significant effect on labour income, which tends to be offset by a parallel increase in social transfers, except in the case of women with low levels of education in the Southern countries.

Suggested Citation

  • David Casado-Marín & Pilar García-Gómez & Ángel López-Nicolás, 2008. "Labour and income effects of caregiving across Europe: an evaluation using matching techniques," Health, Econometrics and Data Group (HEDG) Working Papers 08/23, HEDG, c/o Department of Economics, University of York.
  • Handle: RePEc:yor:hectdg:08/23
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    References listed on IDEAS

    as
    1. Pilar García Gómez & Angel López Nicolás, 2006. "Health shocks, employment and income in the Spanish labour market," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 997-1009.
    2. Michael Lechner & Rosalia Vazquez-Alvarez, 2003. "The Effect of Disability on Labour Market Outcomes in Germany: Evidence from Matching," University of St. Gallen Department of Economics working paper series 2003 2003-20, Department of Economics, University of St. Gallen.
    3. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    4. Alberto Abadie & Guido W. Imbens, 2002. "Simple and Bias-Corrected Matching Estimators for Average Treatment Effects," NBER Technical Working Papers 0283, National Bureau of Economic Research, Inc.
    5. Heitmueller, Axel & Michaud, Pierre-Carl, 2006. "Informal Care and Employment in England: Evidence from the British Household Panel Survey," IZA Discussion Papers 2010, Institute for the Study of Labor (IZA).
    6. Carmichael, Fiona & Charles, Sue, 1998. "The labour market costs of community care1," Journal of Health Economics, Elsevier, vol. 17(6), pages 747-765, December.
    7. Laura Crespo, 2006. "Caring For Parents And Employment Status Of European Mid-Life Women," Working Papers wp2006_0615, CEMFI.
    8. 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.
    9. 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.
    10. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    11. Richard Blundell & Monica Costa Dias & Costas Meghir & John Van Reenen, 2004. "Evaluating the Employment Impact of a Mandatory Job Search Program," Journal of the European Economic Association, MIT Press, vol. 2(4), pages 569-606, June.
    12. 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.
    13. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
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    Citations

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    Cited by:

    1. Kaschowitz, Judith, 2015. "Der Einfluss der Pflegeverantwortung von Frauen auf das Arbeitsangebot ihrer Partner: Eine Untersuchung mit dem SOEP," Duisburger Beiträge zur soziologischen Forschung 2015-01, University of Duisburg-Essen, Institute of Sociology.
    2. Judith Kaschowitz, 2015. "Der Einfluss der Pflegeverantwortung von Frauen auf das Arbeitsangebot ihrer Partner: eine Untersuchung mit dem SOEP," SOEPpapers on Multidisciplinary Panel Data Research 780, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. repec:rdg:wpaper:em-dp2011-03 is not listed on IDEAS
    4. Marina Della Giusta & Nigar Hashimzade & Sarah Jewell, 2011. "Why Care? Social Norms, Relative Income and the Supply of Unpaid Care," Economics & Management Discussion Papers em-dp2011-03, Henley Business School, Reading University.
    5. Lilly, Meredith B. & Laporte, Audrey & Coyte, Peter C., 2010. "Do they care too much to work? The influence of caregiving intensity on the labour force participation of unpaid caregivers in Canada," Journal of Health Economics, Elsevier, vol. 29(6), pages 895-903, December.

    More about this item

    Keywords

    informal care; female labour force participation; ECHP; matching; ageing;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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