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Does retirement (really) increase informal caregiving? Quasi-experimental evidence from Australia

Rong Zhu and Ilke Onur

Journal of Health Economics, 2023, vol. 87, issue C

Abstract: This paper analyzes the impact of retirement on informal care provision using nationally representative panel data from Australia. To establish causality, we exploit the gender and cohort specific eligibility age for the Australian Age Pension. We find no evidence of an impact of retirement (status or duration) on co-residential or extra-residential unpaid care provided by older individuals. The null effect of retirement on informal caregiving does not differ by the type of care recipient. Furthermore, we demonstrate that older people who postpone retirement reduce the amount of time they spend on other non-market activities to resolve the time conflict between unpaid care and extended employment. Our analysis indicates that the Australian Age Pension reform aimed at working career prolongation has not crowded out the supply of informal care.

Keywords: Retirement; Informal caregiving; Pension reform; Population aging (search for similar items in EconPapers)
JEL-codes: H55 J22 J26 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:87:y:2023:i:c:s0167629622001278

DOI: 10.1016/j.jhealeco.2022.102713

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Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

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