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Caring for carers? The effect of public subsidies on the wellbeing of unpaid carers

Author

Listed:
  • Costa-Font, Joan
  • D'Amico, Francesco
  • Vilaplana-Prieto, Cristina

Abstract

We study the effect of long-term care subsidies and supports on the well-being of unpaid caregivers. We draw on evidence from a policy intervention, which universalized previously means-tested caregiving supports in Scotland, known as free personal care (FPC). We document causal evidence of an increase in the well-being (happiness) of unpaid carers after the introduction of FPC. Our estimates suggest economically relevant improvements in happiness (12 percentage point increase in subjective well-being) among caregivers exposed to FPC and who provide at least 35 hours of care per week. Consistently, these results are larger among women and non-actively employed caregivers (17 percentage point increase in happiness). Estimates are not driven by selection into caregiving; they are explained by income effects of FPC among caregivers.

Suggested Citation

  • Costa-Font, Joan & D'Amico, Francesco & Vilaplana-Prieto, Cristina, 2023. "Caring for carers? The effect of public subsidies on the wellbeing of unpaid carers," LSE Research Online Documents on Economics 116940, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:116940
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    File URL: http://eprints.lse.ac.uk/116940/
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    More about this item

    Keywords

    caregiving; long-term care subsidies; Scotland; caregiver’s well-being; subjective well-being;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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