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Effects of Informal Elderly Care on Labor Supply: Exploitation of Government Intervention on the Supply Side of Elderly Care Market

Nishimura, Y.; Oikawa, M.;
Authors registered in the RePEc Author Service: Masato Oikawa () and Yoshinori Nishimura ()

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: This study analyzes the effect of informal elderly care on caregiver labor supply. Since the Japanese government intervenes on the supply side of the elderly care market and market entry of nursing home suppliers is regulated, this analysis utilizes exogenous variations from the supply side of government intervention on the elderly care market. Owing to such intervention and regulation, public nursing home capacity exogenously changes for caregivers, which we use to estimate the effect of informal elderly care on labor supply. To the best of our knowledge, no study has thus far utilized exogenous institutional variation as an instrument to estimate this effect. Analysis results reveal that the effect of informal elderly care on female labor force participation is negative. By contrast, male labor force participation is not affected by such care, since, in Japan, females spend more time on informal care than males. The increase in nursing home capacity is thus effective for decreasing the female burden of informal care.

Keywords: informal care; labor supply; government intervention; JSTAR (search for similar items in EconPapers)
JEL-codes: J14 J18 J22 I18 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dem and nep-lab
Date: 2017-02
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