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Informal Care and Labor Supply

Elisabeth Fevang (), Snorre Kvrendokk and Knut Røed ()
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Snorre Kvrendokk: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, 0349 Oslo, Norway

No 2008:8, HERO Online Working Paper Series from University of Oslo, Health Economics Research Programme

Abstract: Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring’s labor market activity. The employment propen-sity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent’s death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the par-ent’s demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.

Keywords: Elderly care; labor supply; ageing; inheritance (search for similar items in EconPapers)
JEL-codes: J14 J22 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2009-06-02
New Economics Papers: this item is included in nep-age, nep-hea and nep-lab
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Citations: View citations in EconPapers (1)

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