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

Joan Costa-Font, Sergi Jimenez-Martin and Cristina Vilaplana-Prieto ()
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Cristina Vilaplana-Prieto: Universidad de Murcia

No 11774, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We study the effect of demand-side subsidies to old age care recipients on both caregiving and intergenerational transfer decisions. We exploit two quasi-natural experiments referring to the inception of a universal and unconditional caregiving allowance in 2007 and its subsequent reduction in 2012. We find that the introduction of a caregiving allowance of a magnitude up to 530€ in 2011 increased the probability of informal caregiving by 32% and the intensity of care in 13.5 days/year. Consistently, 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: unconditional transfer; family transfers; exchange motivation; caregiving allowances; long-term care; difference-in-differences; intergenerational transfers; caregiving; demand-side cash subsidies (search for similar items in EconPapers)
JEL-codes: D14 G22 I18 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2018-08
New Economics Papers: this item is included in nep-age, nep-dem and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published - revised version published as 'Do Public Caregiving Subsidies and Supports affect the Provision of Care and Transfers?' in: Journal of Health Economics , 2022, 84,102639

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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 (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)
Working Paper: Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers (2016)
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