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Informal And Formal Care In Europe

Author

Listed:
  • Tarja Viitanen

    (Department of Economics, The University of Sheffield)

Abstract

Government expenditure on formal residential care and home-help services for the elderly significantly reduces 45-59 year old women’s informal care-giving affecting both the extensive and the intensive margin. Allowing for country fixed-effects and country-specific trends and correcting for attrition, the estimates – based on the European Community Household Panel – imply that a 1000 Euro increase in the government expenditure on formal residential care and home-help services for the elderly decreases the probability of informal care-giving outside of the caregiver’s household by 6 percentage points. Formal care substitutes for informal care that is undertaken outside of the carer’s own household, but does not substitute for intergenerational household formation. A simulation exercise shows that an increase in government formal care expenditure is a cost-effective way of increasing the labour force participation rates.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Tarja Viitanen, 2007. "Informal And Formal Care In Europe," Working Papers 2007010, The University of Sheffield, Department of Economics, revised Jun 2007.
    • Handle: RePEc:shf:wpaper:2007010
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    File URL: http://www.shef.ac.uk/content/1/c6/07/11/66/SERP2007010.pdf
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    File URL: http://www.shef.ac.uk/content/1/c6/07/11/66/SERP2007010.pdf
    File Function: Revised version, 2007
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    informal care; formal care; ECHP; attrition bias;
    All these keywords.

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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