Long-run consequences of informal elderly care and implications of public long-term care insurance

Arbeitspapier

In this paper, I estimate a dynamic structural model of labor supply, retirement, and informal care supply, incorporating labor market frictions and the German tax and benefit system. I find that informal elderly care has adverse and persistent effects on labor market outcomes and therefore negatively affects lifetime earnings, future pension benefits, and individuals' well-being. These consequences of caregiving are heterogeneous and depend on age, previous earnings, and institutional regulations. Policy simulations suggest that, even though fiscally costly, public long-term care insurance can offset the personal costs of caregiving to a large extent - in particular for low-income individuals.

Object Details

• ISBN: 978-3-86788-942-1
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Ruhr Economic Papers ; No. 813

Classification and Topics

• Classification: Wirtschaft ; Health: Government Policy; Regulation; Public Health ; Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Time Allocation and Labor Supply ; Retirement; Retirement Policies
• Subject: long-term care ; informal care ; long-term care insurance ; labor supply ; retirement ; pension benefits ; structural model

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Korfhage, Thorben
• Event: Veröffentlichung
• (who): RWI - Leibniz-Institut für Wirtschaftsforschung
• (where): Essen
• (when): 2019

Further information

• DOI: doi:10.4419/86788942
• Handle: http://hdl.handle.net/10419/201718
• Last update: 10.03.2025, 11:42 AM CET