Health of Elderly Parents, Their Children's Labor Supply, and the Role of Migrant Care Workers

Wolfgang Frimmel, Martin Halla, Jörg Paetzold and Julia Schmieder

No 1902, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: We estimate the impact of parental health on adult children’s labor market outcomes. We focus on health shocks which increase care dependency abruptly. Our estimation strategy exploits the variation in the timing of shocks across treated families. Empirical results based on Austrian administrative data show a significant negative impact on labor market activities of children. This effect is more pronounced for daughters and for children who live close to their parents. Further analyses suggest informal caregiving as the most likely mechanism. The effect is muted after a liberalization of the formal care market, which sharply increased the supply of foreign care workers.

Keywords: Informal care; formal care; aging; health; labor supply; labor migration (search for similar items in EconPapers)
JEL-codes: I11 I18 J14 J22 R23 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2020
New Economics Papers: this item is included in nep-age, nep-dem, nep-hea, nep-ias, nep-lab and nep-mig
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Citations: View citations in EconPapers (12)

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Related works:
Working Paper: Health of Elderly Parents, Their Children's Labor Supply, and the Role of Migrant Care Workers (2020)
Working Paper: Health of Elderly Parents, their Children's Labor Supply, and the Role of Migrant Care Workers (2020)
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