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The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study

Nizalova, Olena (2012) The Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study. Southern Economic Journal, 79 (2). pp. 350-366. ISSN 0038-4038. E-ISSN 2325-8012. (doi:10.4284/0038-4038-2010.133) (KAR id:52437)

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Official URL
http://dx.doi.org/10.4284/0038-4038-2010.133

Abstract

This article focuses on the wage elasticity of informal care supply to elderly parents employing an instrumental variable approach to account for the fact that the wage rate is likely to be correlated with omitted variables. Using the 1998 wave of the 1998), the wage elasticity of informal care supply is estimated to be negative and larger in magnitude than found previously. The lower bound of this elasticity is estimated to be ?1.8 for males and ?3.6 for females. Additional findings suggest that this wage elasticity differs by the type of care provided to elderly parents and that it is larger in magnitude among individuals with siblings and those with independently living parents. Overall the reductions in the informal care constitute about 18% of the labor supply response for men and about 56% of the labor supply response for women, which are not compensated by monetary transfers.

Item Type: Article
DOI/Identification number: 10.4284/0038-4038-2010.133
Uncontrolled keywords: wage elasticity, informal care supply, labor supply, elderly care, family obligations
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Divisions > Division for the Study of Law, Society and Social Justice > School of Social Policy, Sociology and Social Research > Personal Social Services Research Unit
Divisions > Division for the Study of Law, Society and Social Justice > School of Social Policy, Sociology and Social Research > Centre for Health Services Studies
Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Olena Nizalova
Date Deposited: 25 Nov 2015 17:02 UTC
Last Modified: 16 Nov 2021 10:21 UTC
Resource URI: https://kar.kent.ac.uk/id/eprint/52437 (The current URI for this page, for reference purposes)
Nizalova, Olena: https://orcid.org/0000-0002-1704-2632
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