The effect of unpaid caregiving intensity on labour force participation: Results from a multinomial endogenous treatment model

Impacts of Informal Caregiving on Caregiver Employment, Health, and Family

“…In their examination of extensive effects, they show that only men providing personal care are 2.4% less likely to work, whereas women suffer a wage penalty and reduced working hours. Nguyen and Connelly (2014), in contrast, find no gender differences, whereas Meng (2012) identifies a slightly lower reduction in work hours for female caregivers in Germany.…”

“…Not only are these two lines of causality equally plausible, they are not mutually exclusive and can even occur simultaneously (Michaud et al 2010). However, several recent studies find little evidence for an endogenous caregiving decision and thus treat caregiving as exogenous, particularly when controlling for unobserved individual characteristics in panel data (see Bolin et al 2008b, Ciani 2012, Meng 2012, Van Houtven et al 2013, Nguyen & Connelly 2014. The instruments used in such research, however, often measure the health of potential care receivers, which should exogenously increase the demand for caregiving.…”

“…Even though these effects remain small, however, the majority of studies do provide some evidence that caregivers are less likely to have a paid job (Carmichael & Charles 2003, Bittman et al 2007, Berecki-Gisolf et al 2008, Bolin et al 2008b, Carmichael et al 2010, Lilly et al 2010, Nguyen & Connelly 2014. For example, Bolin et al (2008b), using data from SHARE, identify a 10% increase in care hours associated with a 3.7% lower employment probability.…”

“…Most studies, for instance, take a distinct look at the caregiver's gender, relationship to the care recipient, and living arrangements. Large impacts on the caregivers' labor force participation are mostly observed among particular at-risk groups or subsamples (see, e.g., Nguyen & Connelly 2014). Researchers also often address other characteristics that seem to influence the 17 work-care relationship, 12 such as the tendency for older, white, or uneducated caregivers to suffer more in terms of career (Wakabayashi & Donato 2005).…”

“…For example, Carmichael et al (2010) use a discrete-time logit model to show a negative link between employment, as well as higher hourly earnings, and the probability of care provision, especially in a co-residential setting. Such marked effects on the caregiver's labor force participation are not surprising given that co-residing with the care receiver often reflects high care demands (see Heitmueller 2007, Nguyen & Connelly 2014. Hence, Lilly et al (2007) conclude that cases of intense care are inherently related to lower labor force participation; the threshold for intense caregiving varies among studies, but points mostly to caregiving over 10 hours (King & Pickard 2013) or 20 hours a week (Heitmueller 2007, Lilly et al 2010 Lee and Tang (2013), using HRS data to assess differences in types of caregiving tasks, find that the employment probability for women providing care personal care to their parents is significantly lower, whereas the coefficient for also running errands and helping with chores (in combination with personal care) shows no effect.…”