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Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care

Bruce Hollingsworth (), Asako Ohinata (), Matteo Picchio () and Ian Walker ()

No 424, Working Papers from Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali

Abstract: We investigate the impact of a policy reform, which introduced free formal personal care for all those aged 65 and above, on caregiving behaviour. Using a difference-indifferences estimator, we estimate that the free formal care reduced the probability of co-residential informal caregiving by 12.9%. Conditional on giving co-residential care, the mean reduction in the number of informal care hours is estimated to be 1:2 hours per week. The effect is particularly strong among older and less educated caregivers. In contrast to co-residential informal care, we find no change in extra-residential caregiving behaviour. We also observe that the average labour market participation and the number of hours worked increased in response to the policy introduction.

Keywords: Long-term elderly care; ageing; financial support; informal caregiving; difference-in-differences (search for similar items in EconPapers)
JEL-codes: C21 D14 I18 J14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-eur, nep-hea, nep-lab and nep-ltv
Date: 2017-11
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Working Paper: Labour Supply and Informal Care Supply: The Impacts of Financial Support for Long-Term Elderly Care (2017) Downloads
Working Paper: Labour supply and informal care supply: The impacts of financial support for long-term elderly care (2017) Downloads
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