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Informal Care and Labor Supply

Elisabeth Fevang (), Snorre Kverndokk and Knut Røed ()

No 3717, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 propensity 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 parent'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: inheritance; elderly care; labor supply; ageing (search for similar items in EconPapers)
JEL-codes: J14 J22 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2008-09
New Economics Papers: this item is included in nep-age, nep-hea and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Published - substantially revised version published as 'Labor Supply in the Terminal Stages of Lone Parents’ Lives' in: Journal of Population Economics, 2012, 25 (4), 1399-1422

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Working Paper: Informal Care and Labor Supply (2009) Downloads
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