The effect of unemployment on care provision

Björn Fischer, Peter Haan and Santiago Salazar Sanchez

EconStor Open Access Articles and Book Chapters, 2022, vol. 23, 1-31

Abstract: In this paper we estimate the effect of unemployment on informal care provision. For the identification we use plant closures as a source of exogenous variation and combine difference-in-differences with matching based on entropy balancing. The analysis is based on data from the German Socio-Economic Panel (SOEP). We find that there is a time conflict between employment and informal care provision. Unemployment increases the probability of providing care by 2.9 percentage points while the daily hours of care provision rise by around 0.05 h per week-day. Both men and women react with significant increases in care provision. We find the largest effects for women with low education.

Keywords: Long-term care; informal care; long-term care insurance; labor supply; unemployment; plant closure; entropy balancing (search for similar items in EconPapers)
JEL-codes: I11 I18 I38 J14 J21 J22 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:307399

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