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Family Bargaining and the Gender Gap in Informal Care

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  • Chiara Canta
  • Helmuth Cremer

Abstract

We study the optimal long-term care policy when informal care can be provided by children in exchange for monetary transfers by their elderly parents. We consider a bargaining model with single-child families. Daughters have a lower labor market wage and a lower bargaining power within the family with respect to sons. Consequently, they provide more informal care and have lower welfare in the laissez-faire (although not necessarily lower transfers). The first best involves redistribution from families with sons to families with daughters and can be implemented by a gender-specific schedule of public LTC benefits and transfers to working children. If the policy is restricted to be gender neutral, we find that the informal care provided by daughters should be distorted up to enhance redistribution from families with sons to families with daughters. Transfers within the family should be distorted in both types of families.

Suggested Citation

  • Chiara Canta & Helmuth Cremer, 2022. "Family Bargaining and the Gender Gap in Informal Care," CESifo Working Paper Series 9877, CESifo.
    • Handle: RePEc:ces:ceswps:_9877
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    1. Cremer, Helmuth & Pestieau, Pierre, 1993. "Education for Attention: A Nash Bargaining Solution to the Bequest-as-Exchange Model," Public Finance = Finances publiques, , vol. 48(Supplemen), pages 85-97.
    2. Barigozzi, Francesca & Cremer, Helmuth & Roeder, Kerstin, 2020. "Caregivers in the family: Daughters, sons and social norms," European Economic Review, Elsevier, vol. 130(C).
    3. Schmitz, Hendrik & Westphal, Matthias, 2017. "Informal care and long-term labor market outcomes," Journal of Health Economics, Elsevier, vol. 56(C), pages 1-18.
    4. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
    5. Canta, Chiara & Cremer, Helmuth, 2019. "Long-term care policy with nonlinear strategic bequests," European Economic Review, Elsevier, vol. 119(C), pages 548-566.
    6. Canta Chiara & Pestieau Pierre, 2013. "Long-Term Care Insurance and Family Norms," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 401-428, April.
    7. CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, 2012. "The economics of long-term care: a survey," LIDAM Discussion Papers CORE 2012030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Justina Klimaviciute & Sergio Perelman & Pierre Pestieau & Jerome Schoenmaeckers, 2017. "Caring for dependent parents: Altruism, exchange or family norm?," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 835-873, July.
    9. Jakobsson, Niklas & Kotsadam, Andreas & Syse, Astri & Øien, Henning, 2016. "Gender bias in public long-term care? A survey experiment among care managers," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 126-138.
    10. Michele Wilson & Courtney Houtven & Sally Stearns & Elizabeth Clipp, 2007. "Depression and Missed Work among Informal Caregivers of Older Individuals with Dementia," Journal of Family and Economic Issues, Springer, vol. 28(4), pages 684-698, December.
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    Cited by:

    1. Akira Yakita, 2024. "Old-age support policy and fertility with strategic bequest motives," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(2), pages 1-23, June.

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    More about this item

    Keywords

    long-term care; informal care; strategic bequests; family bargaining; gender-neutrality;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I19 - Health, Education, and Welfare - - Health - - - Other

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