Informal home care and labor-force participation of household members

Abstract

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Informal Caregiving and the Retirement Decision

“…I cannot confirm the strong positive effects that Dentinger and Clarkberg () find for men but nevertheless their effect is large and significantly positive when the intensity of caregiving increases. As I expected, the effects which are found here are more pronounced than the labor force participation effects found by Meng (). That study consists of a SOEP sample for the period 2001–7 and contains individuals who are observed between their mid‐thirties and the mandatory retirement age.…”

“…The hazard increases by 3.3% for every additional care hour a man provides per week compared with non‐caregiving men who retire at the same age. In a previous publication by Meng (), a ten‐hour increase in care provision per week only leads to a one‐hour reduction in working hours for individuals who are in their mid‐thirties to mid‐sixties. Therefore, I can support the hypothesis that labor market effects due to care obligations become more relevant in the later years of life.…”

“…() report a huge negative effect on the employment probability of married women prior to the introduction of the German mandatory care insurance system. Meng () does not find a negative impact on labor force participation under the current care insurance system. Working hours are reduced by about one hour for men and by about half an hour for women for ten more hours of care per week.…”

Long‐term Care Insurance and Carers' Labor Supply – A Structural Model

“…Earlier studies analyze the general relation between caring and labor supply (for a literature review, see Lilly et al () or the online appendix). Depending on the data set and identification strategy, studies find either no significant effect (e.g., Wolf and Soldo, ; Stern, ; Meng, ) or a negative impact of caring hours on labor supply (e.g., Ettner, ; Johnson and Lo Sasso, ; Carmichael and Charles, ; Schneider et al , ; Carmichael and Charles, ; Heitmueller, ; Spiess and Schneider, ).…”

“… Panel attrition can bias our estimates, if it is correlated with care‐related variables. We rely on Meng () who shows that panel attrition because of caregiving does not bias estimated coefficients systematically.…”