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Long-term Care Responsibility and its Opportunity Costs

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  • Meng, Annika

Abstract

This paper analyzes the relationship between long-term care provision and the average individual wage rate. In addition, the effects 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 effects 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 effects 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 significantly affected.

Suggested Citation

  • Meng, Annika, 2010. "Long-term Care Responsibility and its Opportunity Costs," Ruhr Economic Papers 168, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:168
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    References listed on IDEAS

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    6. Annika Meng, 2009. "Informal Home Care and Labor Force Participation of Household Members," Ruhr Economic Papers 0152, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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    8. Annika Meng, 2013. "Informal home care and labor-force participation of household members," Empirical Economics, Springer, vol. 44(2), pages 959-979, April.
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    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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