Labor Supply when Parents are in Need of Care

Eduardo Lizardi (), Elisabeth Fevang (), Snorre Kverndokk and Knut Røed
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Eduardo Lizardi: Department of Health Economics and Management, University of Oslo
Elisabeth Fevang: Ragnar Frisch Centre for Economic Research

No 18508, IZA Discussion Papers from IZA Network @ LISER

Abstract: Using Norwegian administrative register data, we show that having a lone parent in the terminal stage of life or close to a nursing home admission has a small negative effect on the offspring's labor supply, both at the extensive and the intensive margins. While the effects at the intensive margin are reversed after the parent is admitted to nursing home or dies, the negative employment effects are not. We provide evidence indicating that labor supply changes around these critical events are primarily driven by income effects related to a realized or forthcoming inheritance and not by care requirements. Given the scale and quality of publicly provided long-term care in Norway, we conclude that while a parent's need for care does trigger a significant rise in offspring's (particularly daughters') short-term absence from work, it does not noticeably affect their overall employment and earnings.

Keywords: long-term care; labor supply of offspring; inheritance (search for similar items in EconPapers)
JEL-codes: J14 J22 (search for similar items in EconPapers)
Date: 2026-03
New Economics Papers: this item is included in nep-age, nep-eur, nep-lab and nep-lma
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