Long-run consequences of informal elderly care and implications of public long-term care insurance
Thorben Korfhage ()
No 813, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen
In this paper, I estimate a dynamic structural model of labor supply, retirement, and informal care supply, incorporating labor market frictions and the German tax and benefit system. I find that informal elderly care has adverse and persistent effects on labor market outcomes and therefore negatively affects lifetime earnings, future pension benefits, and individuals' well-being. These consequences of caregiving are heterogeneous and depend on age, previous earnings, and institutional regulations. Policy simulations suggest that, even though fiscally costly, public long-term care insurance can offset the personal costs of caregiving to a large extent - in particular for low-income individuals.
Keywords: long-term care; informal care; long-term care insurance; labor supply; retirement; pension benefits; structural model (search for similar items in EconPapers)
JEL-codes: I18 I38 J14 J22 J26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-age, nep-dem, nep-dge and nep-ias
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Working Paper: Long-Run Consequences of Informal Elderly Care and Implications of Public Long-Term Care Insurance (2019)
Working Paper: Long-run consequences of informal elderly care and implications of public long-term care insurance (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:813
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