Informal Care and Labor Supply

39 Pages Posted: 6 Oct 2008

See all articles by Elisabeth Fevang

Elisabeth Fevang

University of Oslo - Ragnar Frisch Centre for Economic Research

Snorre Kverndokk

Ragnar Frisch Centre for Economic Research

Knut Roed

Ragnar Frisch Centre for Economic Research; IZA Institute of Labor Economics

Abstract

Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring's labor market activity. The employment propensity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent's death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the parent's demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.

Keywords: elderly care, labor supply, ageing, inheritance

JEL Classification: J14, J22

Suggested Citation

Fevang, Elisabeth and Kverndokk, Snorre and Røed, Knut, Informal Care and Labor Supply. IZA Discussion Paper No. 3717. Available at SSRN: https://ssrn.com/abstract=1278917 or http://dx.doi.org/10.1111/j.0042-7092.2007.00700.x

Elisabeth Fevang (Contact Author)

University of Oslo - Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0317 Oslo
Norway

Snorre Kverndokk

Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0349 Oslo
Norway
+47 22958811 (Phone)
+47 22958825 (Fax)

HOME PAGE: http://www.frisch.uio.no/cv/snorrek_eng.html

Knut Røed

Ragnar Frisch Centre for Economic Research ( email )

Gaustadalleen 21
N-0349 Oslo
Norway

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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