Health of elderly parents, their children's labor supply, and the role of migrant care workers

Arbeitspapier

We estimate the impact of parental health on adult children's labor market out- comes. We focus on health shocks which increase care dependency abruptly. Our estimation strategy exploits the variation in the timing of shocks across treated families. Empirical results based on Austrian administrative data show a significant negative impact on labor market activities of children. This effect is more pronounced for daughters and for children who live close to their parents. Further analyses suggest informal caregiving as the most likely mechanism. The effect is muted after a liberalization of the formal care market, which sharply increased the supply of foreign care workers.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 1902

Classification and Topics

• Classification: Wirtschaft ; Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination ; Time Allocation and Labor Supply ; Analysis of Health Care Markets ; Health: Government Policy; Regulation; Public Health ; Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
• Subject: informal care ; formal care ; aging ; health ; labor supply ; labor migration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Frimmel, Wolfgang ; Halla, Martin ; Paetzold, Jörg ; Schmieder, Julia
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/225030
• Last update: 10.03.2025, 11:44 AM CET