Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/hlthec/v29y2020i10p1101-1116.html
   My bibliography  Save this article

The heterogeneous effect of retirement on informal care behavior

Author

Listed:
  • Julien Bergeot
  • Roméo Fontaine
Abstract
It is often argued that the increased labor market participation of seniors threatens family support provided to dependent elderly people. The purpose of this paper is to assess the causal effect of retirement on the frequency of care provided by individuals aged 55–69 years to their elderly parent. Using data from the Survey of Health, Aging and Retirement in Europe (SHARE), we estimate an endogenous switching model that allows the retirement effect to be heterogeneous with respect to observed and unobserved characteristics. To tackle the possible endogeneity of selection into retirement, we use the heterogeneity of retirement rules between and within European countries. On average, being retired does not significantly impact the probability of providing care but significantly increases the frequency of care conditional on being caregiver. The same pattern is observed regardless of the individual observed characteristics, even if the provision of informal care appears to be less sensitive to the retirement status when the child cannot rely on the other parent to provide care or when both parents are in poor health. These results suggest that pension system reforms should not affect the number of caregivers. Some adverse effects on the intensity of involvement among caregivers are nevertheless expected.

Suggested Citation

  • Julien Bergeot & Roméo Fontaine, 2020. "The heterogeneous effect of retirement on informal care behavior," Health Economics, John Wiley & Sons, Ltd., vol. 29(10), pages 1101-1116, October.
    • Handle: RePEc:wly:hlthec:v:29:y:2020:i:10:p:1101-1116
    DOI: 10.1002/hec.4121
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/hec.4121
    Download Restriction: no
    File URL: https://libkey.io/10.1002/hec.4121?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Steven Stern, 1995. "Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 551-580.
    2. Godard, Mathilde, 2016. "Gaining weight through retirement? Results from the SHARE survey," Journal of Health Economics, Elsevier, vol. 45(C), pages 27-46.
    3. Carmichael, F. & Charles, S. & Hulme, C., 2010. "Who will care? Employment participation and willingness to supply informal care," Journal of Health Economics, Elsevier, vol. 29(1), pages 182-190, January.
    4. Daifeng He & Peter McHenry, 2016. "Does Formal Employment Reduce Informal Caregiving?," Health Economics, John Wiley & Sons, Ltd., vol. 25(7), pages 829-843, July.
    5. Schmitz, Hendrik & Westphal, Matthias, 2017. "Informal care and long-term labor market outcomes," Journal of Health Economics, Elsevier, vol. 56(C), pages 1-18.
    6. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    7. Mazzonna, Fabrizio & Peracchi, Franco, 2012. "Ageing, cognitive abilities and retirement," European Economic Review, Elsevier, vol. 56(4), pages 691-710.
    8. Bauer, Jan Michael & Sousa-Poza, Alfonso, 2015. "Impacts of Informal Caregiving on Caregiver Employment, Health, and Family," IZA Discussion Papers 8851, Institute of Labor Economics (IZA).
    9. C. Katharina Spiess & Ulrike Schneider, 2002. "Midlife Caregiving & Employment: an Analysis of Adjustments in Work Hours and Informal Care for Female Employees in Europe," Economics Working Papers 009, European Network of Economic Policy Research Institutes.
    10. K. Bolin & B. Lindgren & P. Lundborg, 2008. "Informal and formal care among single‐living elderly in Europe," Health Economics, John Wiley & Sons, Ltd., vol. 17(3), pages 393-409, March.
    11. Nicole Maestas, 2010. "Expectations and Realizations of Work after Retirement," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    12. Jacobs, Josephine C. & Laporte, Audrey & Van Houtven, Courtney H. & Coyte, Peter C., 2014. "Caregiving intensity and retirement status in Canada," Social Science & Medicine, Elsevier, vol. 102(C), pages 74-82.
    13. Annika Meng, 2012. "Informal Caregiving and the Retirement Decision," German Economic Review, Verein für Socialpolitik, vol. 13(3), pages 307-330, August.
    14. Bram Lancee & Jonas Radl, 2012. "Social Connectedness and the Transition From Work to Retirement," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 67(4), pages 481-490.
    15. Michaud, Pierre-Carl & Heitmueller, Axel & Nazarov, Zafar, 2010. "A dynamic analysis of informal care and employment in England," Labour Economics, Elsevier, vol. 17(3), pages 455-465, June.
    16. Bom, Judith & Bakx, Pieter & Schut, Frederik & van Doorslaer, Eddy, 2019. "Health effects of caring for and about parents and spouses," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    17. Abadie, Alberto, 2003. "Semiparametric instrumental variable estimation of treatment response models," Journal of Econometrics, Elsevier, vol. 113(2), pages 231-263, April.
    18. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    19. Susann Rohwedder & Robert J. Willis, 2010. "Mental Retirement," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 119-138, Winter.
    20. Fabrizio Mazzonna & Franco Peracchi, 2017. "Unhealthy Retirement?," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 128-151.
    21. Van Houtven, Courtney Harold & Coe, Norma B. & Skira, Meghan M., 2013. "The effect of informal care on work and wages," Journal of Health Economics, Elsevier, vol. 32(1), pages 240-252.
    22. Van Houtven, Courtney Harold & Norton, Edward C., 2004. "Informal care and health care use of older adults," Journal of Health Economics, Elsevier, vol. 23(6), pages 1159-1180, November.
    23. Norma B. Coe & Courtney Harold Van Houtven, 2009. "Caring for mom and neglecting yourself? The health effects of caring for an elderly parent," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 991-1010, September.
    24. Matteo Picchio & Jan C. van Ours, 2020. "Mental Health Effects of Retirement," De Economist, Springer, vol. 168(3), pages 419-452, September.
    25. Bridget Hiedemann & Michelle Sovinsky & Steven Stern, 2018. "Will You Still Want Me Tomorrow?: The Dynamics of Families’ Long-Term Care Arrangements," Journal of Human Resources, University of Wisconsin Press, vol. 53(3), pages 663-716.
    26. Mommaerts, Corina, 2018. "Are coresidence and nursing homes substitutes? Evidence from Medicaid spend-down provisions," Journal of Health Economics, Elsevier, vol. 59(C), pages 125-138.
    27. Axel Borsch-Supan & Jagadeesh Gokhale & Laurence J. Kotlikoff & John N. Morris, 1992. "The Provision of Time to the Elderly by Their Children," NBER Chapters, in: Topics in the Economics of Aging, pages 109-134, National Bureau of Economic Research, Inc.
    28. Heitmueller, Axel & Inglis, Kirsty, 2007. "The earnings of informal carers: Wage differentials and opportunity costs," Journal of Health Economics, Elsevier, vol. 26(4), pages 821-841, July.
    29. Yoko Niimi, 2018. "Does providing informal elderly care hasten retirement? Evidence from Japan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1039-1062, August.
    30. Berecki-Gisolf, Janneke & Lucke, Jayne & Hockey, Richard & Dobson, Annette, 2008. "Transitions into informal caregiving and out of paid employment of women in their 50s," Social Science & Medicine, Elsevier, vol. 67(1), pages 122-127, July.
    31. Aakvik, Arild & Heckman, James J. & Vytlacil, Edward J., 2005. "Estimating treatment effects for discrete outcomes when responses to treatment vary: an application to Norwegian vocational rehabilitation programs," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 15-51.
    32. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 12th October 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-10-12 11:00:03

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simard-Duplain, Gaëlle, 2022. "Heterogeneity in informal care intensity and its impact on employment," Journal of Health Economics, Elsevier, vol. 86(C).
    2. Byrne, Dominic & Kwak, Do Won & Tang, Kam Ki & Yazbeck, Myra, 2023. "Spillover effects of retirement: Does health vulnerability matter?," Economics & Human Biology, Elsevier, vol. 48(C).
    3. Ludovico Carrino & Vahé Nafilyan & Mauricio Avendano, 2023. "Should I Care or Should I Work? The Impact of Work on Informal Care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(2), pages 424-455, March.
    4. Eibich, Peter & Lorenti, Angelo & Mosca, Irene, 2022. "Does retirement affect voluntary work provision? Evidence from Europe and the U.S," Labour Economics, Elsevier, vol. 76(C).
    5. Fischer, Björn & Haan, Peter & Sanchez, Santiago Salazar, 2022. "The effect of unemployment on care provision," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    6. Zhu, Rong & Onur, Ilke, 2023. "Does retirement (really) increase informal caregiving? Quasi-experimental evidence from Australia," Journal of Health Economics, Elsevier, vol. 87(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fischer, Björn & Müller, Kai-Uwe, 2020. "Time to care? The effects of retirement on informal care provision," Journal of Health Economics, Elsevier, vol. 73(C).
    2. Carrino, L.; & Nafilyan, V.; & Avendaño Pabon, M.;, 2019. "Should I Care or Should I Work? The Impact of Working in Older Age on Caregiving," Health, Econometrics and Data Group (HEDG) Working Papers 19/23, HEDG, c/o Department of Economics, University of York.
    3. Zhu, Rong & Onur, Ilke, 2023. "Does retirement (really) increase informal caregiving? Quasi-experimental evidence from Australia," Journal of Health Economics, Elsevier, vol. 87(C).
    4. Heger, Dörte & Korfhage, Thorben, 2017. "Does the negative effect of caregiving on work persist over time?," Ruhr Economic Papers 703, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    5. Fischer, Björn & Haan, Peter & Sanchez, Santiago Salazar, 2022. "The effect of unemployment on care provision," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    6. Rellstab, Sara & Bakx, Pieter & García-Gómez, Pilar & van Doorslaer, Eddy, 2020. "The kids are alright - labour market effects of unexpected parental hospitalisations in the Netherlands," Journal of Health Economics, Elsevier, vol. 69(C).
    7. Bauer, Jan Michael & Sousa-Poza, Alfonso, 2015. "Impacts of Informal Caregiving on Caregiver Employment, Health, and Family," IZA Discussion Papers 8851, Institute of Labor Economics (IZA).
    8. Ha Trong Nguyen & Luke B. Connelly, 2017. "The Dynamics of Informal Care Provision in an Australian Household Panel Survey: Previous Work Characteristics and Future Care Provision," The Economic Record, The Economic Society of Australia, vol. 93(302), pages 395-419, September.
    9. Norton, E.C., 2016. "Health and Long-Term Care," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 951-989, Elsevier.
    10. Ludovico Carrino & Vahé Nafilyan & Mauricio Avendano, 2023. "Should I Care or Should I Work? The Impact of Work on Informal Care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(2), pages 424-455, March.
    11. Abrahamsen, Signe A. & Grøtting, Maja Weemes, 2019. "Formal Care of the Elderly and Health Outcomes Among Adult Daughters," Working Papers in Economics 2/19, University of Bergen, Department of Economics.
    12. Nishimura, Y.; Oikawa, M.;, 2017. "Effects of Informal Elderly Care on Labor Supply: Exploitation of Government Intervention on the Supply Side of Elderly Care Market," Health, Econometrics and Data Group (HEDG) Working Papers 17/02, HEDG, c/o Department of Economics, University of York.
    13. Simard-Duplain, Gaëlle, 2022. "Heterogeneity in informal care intensity and its impact on employment," Journal of Health Economics, Elsevier, vol. 86(C).
    14. Cristina Vilaplana Prieto & Sergi Jiménez-Martín, 2015. "Unmet needs in formal care: kindling the spark for caregiving behavior," International Journal of Health Economics and Management, Springer, vol. 15(2), pages 153-184, June.
    15. Kolodziej, Ingo & Coe, Norma B. & Van Houtven, Courtney Harold, 2023. "Intensive informal care and impairments in work productivity and activity," Ruhr Economic Papers 1010, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. Mommaerts, Corina & Truskinovsky, Yulya, 2020. "The cyclicality of informal care," Journal of Health Economics, Elsevier, vol. 71(C).
    17. Carmichael, Fiona & Ercolani, Marco G., 2016. "Unpaid caregiving and paid work over life-courses: Different pathways, diverging outcomes," Social Science & Medicine, Elsevier, vol. 156(C), pages 1-11.
    18. Yoko Niimi, 2018. "Does providing informal elderly care hasten retirement? Evidence from Japan," Review of Development Economics, Wiley Blackwell, vol. 22(3), pages 1039-1062, August.
    19. Costa-Font, Joan & Vilaplana-Prieto, Cristina, 2023. "Caregiving subsidies and spousal early retirement intentions," Journal of Pension Economics and Finance, Cambridge University Press, vol. 22(4), pages 550-589, October.
    20. Jacobs, Josephine C. & Van Houtven, Courtney H. & Laporte, Audrey & Coyte, Peter C., 2015. "Baby Boomer caregivers in the workforce: Do they fare better or worse than their predecessors?," The Journal of the Economics of Ageing, Elsevier, vol. 6(C), pages 89-101.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:29:y:2020:i:10:p:1101-1116. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/5749 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.