Arbeitspapier

Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care

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We investigate the impact of a policy reform, which introduced free formal personal care for all those aged 65 and above, on caregiving behaviour. Using a difference-in-differences estimator, we estimate that the free formal care reduced the probability of co-residential informal caregiving by 12.9%. Conditional on giving co-residential care, the mean reduction in the number of informal care hours is estimated to be 1.2 hours per week. The effect is particularly strong among older and less educated caregivers. In contrast to co-residential informal care, we find no change in extraresidential caregiving behaviour. We also observe that the average labour market participation and the number of hours worked increased in response to the policy introduction.

Language: Englisch

Bibliographic citation: Series: IZA Discussion Papers ; No. 10988

Classification: Wirtschaft
Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions
Household Saving; Personal Finance
Health: Government Policy; Regulation; Public Health
Economics of the Elderly; Economics of the Handicapped; Non-labor Market Discrimination

Subject: long-term elderly care
ageing
financial support
informal caregiving
difference-in-differences

Event: Geistige Schöpfung

(who): Hollingsworth, Bruce
Ohinata, Asako
Picchio, Matteo
Walker, Ian

Event: Veröffentlichung

(who): Institute of Labor Economics (IZA)

(where): Bonn

(when): 2017

Handle: http://hdl.handle.net/10419/170972

Last update: 10.03.2025, 11:42 AM CET

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Object type

Arbeitspapier

Associated

Hollingsworth, Bruce
Ohinata, Asako
Picchio, Matteo
Walker, Ian
Institute of Labor Economics (IZA)

Time of origin

2017

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