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Lifting the Burden: Formal Care of the Elderly and Labor Supply of Adult Children

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  • Katrine V. Løken
  • Shelly Lundberg
  • Julie Riise

Abstract

We use a reform in the federal funding of care for the elderly in Norway to examine the effects of formal care expansion on the labor supply decisions of middle-aged children. We find a consistent and significant negative impact of formal care expansion on insured work absences for the adult daughters of single elderly parents. This effect is particularly strong for daughters with no siblings, who are also more likely to exceed earnings thresholds after the reform. We find no impacts of the reform on daughters’ mobility or parental health, and no effects on adult sons.

Suggested Citation

  • Katrine V. Løken & Shelly Lundberg & Julie Riise, 2017. "Lifting the Burden: Formal Care of the Elderly and Labor Supply of Adult Children," Journal of Human Resources, University of Wisconsin Press, vol. 52(1), pages 247-271.
    • Handle: RePEc:uwp:jhriss:v:52:y:2017:i:1:p:247-271
    Note: DOI: 10.3368/jhr.52.1.0614-6447R1
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    Citations

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    Cited by:

    1. Spencer Bastani & Sebastian Koehne, 2022. "How Should Consumption Be Taxed?," CESifo Working Paper Series 10038, CESifo.
    2. 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).
    3. Niimi, Yoko, 2021. "Juggling paid work and elderly care provision in Japan: Does a flexible work environment help family caregivers cope?," Journal of the Japanese and International Economies, Elsevier, vol. 62(C).
    4. Abrahamsen, Signe A. & Ginja, Rita & Riise, Julie, 2021. "School Health Programs: Education, Health, and Welfare Dependency of Young Adults," IZA Discussion Papers 14546, Institute of Labor Economics (IZA).
    5. Wolfgang Frimmel & Martin Halla & Joerg Paetzold & Julia Schmieder, 2020. "Health of Elderly Parents, their Children's Labor Supply, and the Role of Migrant Care Workers," Economics working papers 2020-18, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Shen, Karen, 2024. "Who benefits from public financing of home-based long term care? Evidence from Medicaid," Journal of Public Economics, Elsevier, vol. 236(C).
    7. Wolfgang Frimmel & Martin Halla & Joerg Paetzold & Julia Schmieder, 2020. "Health of Elderly Parents, their Children's Labor Supply, and the Role of Migrant Care Workers," Economics working papers 2020-18, Department of Economics, Johannes Kepler University Linz, Austria.
    8. Amitabh Chandra & Courtney Coile & Corina Mommaerts, 2023. "What Can Economics Say about Alzheimer's Disease?," Journal of Economic Literature, American Economic Association, vol. 61(2), pages 428-470, June.
    9. 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.
    10. Signe A. Abrahamsen & Maja Weemes Grøtting, 2023. "Formal care of the elderly and health outcomes among adult daughters," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 436-461, February.
    11. Arash Nekoei & Jósef Sigurdsson & Dominik Wehr, 2024. "The Economic Burden of Burnout," CESifo Working Paper Series 11128, CESifo.
    12. Andersland, Leroy, 2017. "A Universal Childcare Expansion, Quality, Starting Age, and School Performance," Working Papers in Economics 8/17, University of Bergen, Department of Economics.
    13. Johannes Geyer & Peter Haan & Mia Teschner, 2024. "The Impact of Macroeconomic Conditions on Long-Term Care: Evidence on Prices," Discussion Papers of DIW Berlin 2096, DIW Berlin, German Institute for Economic Research.

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