Ageing and the Family in Indonesia: An Exploration of the Effect of Elderly Care-Giving on Female Labor Supply

Elisabetta Magnani and Anu Rammohan ()
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Anu Rammohan: University of Western Australia

Journal of Income Distribution, 2009, vol. 18, issue 3-4, 110-130

Abstract: In developing countries, the absence of universal social safety nets frequently necessitates co-residence between older parents and adult children for the provision of elderly care. In this article we use the 2000 Indonesian Family Life Survey (IFLS 3) to distinguish between co-residence with and care-giving for the elderly and examine the impact of care-giving for elderly household members on the labor supply decisions of co-resident working-age adults. After controlling for the potential endogeneity of co-residing decisions and the selection bias arising from such endogeneity, our results suggest that care-giving reduces the margins of labor supply, both the intensive (working hours) and extensive (participation) margins. This effect is particularly strong in samples of female adults.

Keywords: elderly; care-giving; female labor (search for similar items in EconPapers)
JEL-codes: J12 O12 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (4)

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