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Informal care and long-term labor market outcomes

Author

Listed:
  • Schmitz, Hendrik
  • Westphal, Matthias
Abstract
In this paper we estimate the long-run effects of informal care provision on female caregivers' labor market outcomes up to eight years after care provision. We compare a static version, where the average effects of care provision in a certain year on later labor market outcomes are estimated, to a partly dynamic version where the effects of up to three consecutive years of care provision are analyzed. Our results suggest that there are significant initial negative effects of informal care provision on the probability to work full time. The reduction in the probability to work full time by 4 percentage points (or 2.4 to 5.0 if we move from point to partial identification) is persistent over time. Effects on the probability of being in the labor force are quite small, however high care intensity strongly reduces the probability to be in the labor force eight years after the start of the episode. Short-run effects on hourly wages are zero but we find considerable long-run wage penalties.

Suggested Citation

  • Schmitz, Hendrik & Westphal, Matthias, 2016. "Informal care and long-term labor market outcomes," Ruhr Economic Papers 646, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:646
    DOI: 10.4419/86788752
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    More about this item

    Keywords

    informal care; labor supply; inverse probability weighting; dynamic sequential models;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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