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

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: We show that demand side cash subsidies to care recipients alter both caregiving and intergenerational transfer decisions. We exploit a quasi-natural experiment referring to the inception of a universal caregiving allowance (in 2007 and its reduction in 2012). We find a caregiving subsidy (of a magnitude of 530€ in 2011) to increase the probability of informal caregiving by 32% (the intensity of care in 13.5 days/year). Similarly, 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: caregiving; intergenerational transfers; difference-in-differences; long-term care; family transfers; exchange motivation; caregiving allowances; demand side cash subsidies. (search for similar items in EconPapers)
JEL-codes: D14 G22 I18 (search for similar items in EconPapers)
Date: 2016-09, Revised 2017-05
New Economics Papers: this item is included in nep-age, nep-eur and nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://econ-papers.upf.edu/papers/1537.pdf Whole Paper (application/pdf)

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 (2018)
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1537

Access Statistics for this paper

More papers in Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).