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The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study

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  • Olena Nizalova

Abstract

This paper focuses on the relationship between wages and supply of informal care to elderly parents. Unlike most of the previous research estimating wage elasticities of informal care supply, this study employs instrumental variable technique to account for the fact that the wage rate is likely to be correlated with omitted variables. Based on the data from the 1998 wave of the Health and Retirement Study, the results show that the wage elasticity of informal care supply is negative and larger in magnitude than has been found previously. [IZA Discussion Paper No. 5192]

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  • Olena Nizalova, 2010. "The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study," Working Papers id:2916, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2916
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    Cited by:

    1. Fischer, Björn & Haan, Peter & Sanchez, Santiago Salazar, 2022. "The effect of unemployment on care provision," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
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    3. Bonsang, Eric & Costa-Font, Joan, 2023. "The "Demise of the Caregiving Daughter"? Gender Employment Gaps and the Use of Formal and Informal Care in Europe," IZA Discussion Papers 16615, Institute of Labor Economics (IZA).
    4. Joan Costa-Font & Cristina Vilaplana-Prieto, 2023. "‘Investing’ in care for old age? An examination of long-term care expenditure dynamics and its spillovers," Empirical Economics, Springer, vol. 64(1), pages 1-30, January.

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    More about this item

    Keywords

    wage elasticity; informal care supply; labor supply; elderly care; family obligations;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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