Dementia severity, informal caregiving and labour market outcomes in Europe

Dementia is associated with an increasing need for care, which is often provided by informal carers. This may have an impact on their behaviour in the labour market. This study analyses the impact of dementia severity on informal care, labour market participation and working hours of informal carers. We use data from the multinational RightTimePlaceCare (RTPC) study, which covers eight European countries and uniquely links detailed information on people with dementia and their primary informal carers. Using descriptive statistics and multivariate regression models, we analyse the relationships between the severity of dementia, the intensity of care and labour market outcomes, taking into account the endogeneity of care intensity through an instrumental variable approach. Our results show that higher dementia severity significantly increases the intensity of informal care and substantially reduces both labour market participation and working hours of informal carers. These findings highlight the economic consequences of dementia care and underscore the importance of considering labour market impacts when assessing informal dementia care.