Caring For Carers? The Effect of Public Subsidies on the Well-Being of Unpaid Carers

Joan Costa-Font, Francesco D’Amico and Cristina Vilaplana-Prieto

American Journal of Health Economics, 2023, vol. 9, issue 4, 487 - 522

Abstract: We study the effect of long-term care subsidies and supports on the well-being of unpaid caregivers. We draw on evidence from a policy intervention, which universalized previously means-tested caregiving supports in Scotland, known as free personal care (FPC). We document causal evidence of an increase in the well-being (happiness) of unpaid carers after the introduction of FPC. Our estimates suggest economically relevant improvements in happiness (12 percentage point increase in subjective well-being) among caregivers exposed to FPC and who provide at least 35 hours of care per week. Consistently, these results are larger among women and non-actively employed caregivers (17 percentage point increase in happiness). Estimates are not driven by selection into caregiving; they are explained by income effects of FPC among caregivers.

Date: 2023
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Working Paper: Caring for Carers? The Effect of Public Subsidies on the Wellbeing of Unpaid Carers (2022)
Working Paper: Caring for Carers? The Effect of Public Subsidies on the Wellbeing of Unpaid Carers (2022)
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