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

Bruce Hollingsworth (), Asako Ohinata (), Matteo Picchio and Ian Walker ()
Additional contact information
Bruce Hollingsworth: Lancaster University
Asako Ohinata: University of Leicester

No 10988, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: 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.

Keywords: long-term elderly care; ageing; financial support; informal caregiving; difference-in-differences (search for similar items in EconPapers)
JEL-codes: C21 D14 I18 J14 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2017-09
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea and nep-ltv
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Citations: View citations in EconPapers (8)

Published - revised version published as 'The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply' in: Oxford Bulletin of Economics and Statistics, 2022, 84 (4), 933 - 960

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Related works:
Working Paper: Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care (2017)
Working Paper: Labour supply and informal care supply: The impacts of financial support for long-term elderly care (2017)
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