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Effects of Informal Elderly Care on Labor Supply: Exploitation of Government Intervention on the Supply Side of Elderly Care Market

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  • Nishimura, Y.; Oikawa, M.;

Abstract

This study analyzes the effect of informal elderly care on caregiver labor supply. Since the Japanese government intervenes on the supply side of the elderly care market and market entry of nursing home suppliers is regulated, this analysis utilizes exogenous variations from the supply side of government intervention on the elderly care market. Owing to such intervention and regulation, public nursing home capacity exogenously changes for caregivers, which we use to estimate the effect of informal elderly care on labor supply. To the best of our knowledge, no study has thus far utilized exogenous institutional variation as an instrument to estimate this effect. Analysis results reveal that the effect of informal elderly care on female labor force participation is negative. By contrast, male labor force participation is not affected by such care, since, in Japan, females spend more time on informal care than males. The increase in nursing home capacity is thus effective for decreasing the female burden of informal care.

Suggested Citation

  • 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.
  • Handle: RePEc:yor:hectdg:17/02
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    Keywords

    informal care; labor supply; government intervention; JSTAR;

    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
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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