Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers

Joan Costa-i-Font, Sergi Jimenez-Martin and Cristina Vilaplana
Authors registered in the RePEc Author Service: Joan Costa-i-Font

No 6124, CESifo Working Paper Series from CESifo

Abstract: We show that demand side cash subsidies to care recipients alter both caregiving and intergenerational transfer decisions. We exploit a quasi-natural experiment referring to the inception of a universal caregiving allowance (in 2007 and its reduction in 2012). We find a caregiving subsidy (of a magnitude of 530€ in 2011) to increase the probability of informal caregiving by 32% (the intensity of care in 13.5 days/year). Similarly, we find that downstream (upstream) intergenerational transfers increased (decreased) in a magnitude of 29% (15%). The effects concentrate among middle and lower income households, and were attenuated by the reduction of the subsidy.

Keywords: caregiving; intergenerational transfers; difference-in-differences; long-term care; family transfers; exchange motivation; caregiving allowances; demand side cash subsidies (search for similar items in EconPapers)
JEL-codes: D14 G22 I18 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Journal Article: Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers? (2022)
Working Paper: Do public caregiving subsidies and supports affect the provision of care and transfers? (2022)
Working Paper: Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers (2018)
Working Paper: Thinking of incentivizing care? The effect of demand subsidies on informal caregiving and intergenerational transfers (2017)
Working Paper: Thinking of incentivizing care? The effect of demand subsidies on informal caregiving and intergenerational transfers (2016)
Working Paper: Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers (2016)
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