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Working and Caring: The Simultaneous Decision of Labor Force Participation and Informal Elderly and Child Support Activities in Mexico

Edwin van Gameren and Durfari Velandia Naranjo

Latin American Journal of Economics-formerly Cuadernos de Economía, 2015, vol. 52, issue 2, 117-148

Abstract: We analyze factors determining women's decisions to participate in the labor market and provide elderly care and non financial support to their (grand)children. We use data from the Mexican Health and Aging Study, a survey of people aged 50 and over, applying a three-equation, reduced- form SUR model. Results suggest that care needs are the driving force behind caregiving activities. Traditional roles also appear to be relevant in the labor force participation decision: women with a closer labor market connection when they were young are more likely to work. Simulations of demographic changes illustrate potential effects for future caregiving and participation rates.

Keywords: labor force participation; elderly care; care for (grand)children; multigenerational households; seemingly unrelated regression model (search for similar items in EconPapers)
JEL-codes: D13 J13 J14 J22 (search for similar items in EconPapers)
Date: 2015
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Latin American Journal of Economics-formerly Cuadernos de Economía is currently edited by Raimundo Soto

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