Informal Care and the Great Recession

47 Pages Posted: 14 Jul 2015

See all articles by Joan Costa-Font

Joan Costa-Font

London School of Economics & Political Science (LSE)

Martin Karlsson

University of Duisburg-Essen

Henning Øien

University of Oslo

Date Written: June 30, 2015

Abstract

Macroeconomic downturns can have an important impact on the availability of informal and formal long-term care. This paper investigates how the market for informal care changed during and after the Great Recession in Europe. We use data from the Survey of Health, Aging and Retirement in Europe, which includes a rich set of variables covering waves before and after the Great Recession. We find evidence of an increase in the availability of informal care and a reduction in the use of formal health services (doctor visits and hospital stays) after the economic downturn when controlling for year and country fixed effects. This trend is mainly driven by changes in care provision of individuals not cohabiting with the care recipient. We also find a small negative association between old-age health and crisis severity. The results are robust to the inclusion of individual characteristics, individual-specific effects and region-specific time trends.

Keywords: long-term care, informal care, great recession, downturn, old age dependency

JEL Classification: J100, I180

Suggested Citation

Costa-Font, Joan and Karlsson, Martin and Øien, Henning, Informal Care and the Great Recession (June 30, 2015). CESifo Working Paper Series No. 5427. Available at SSRN: https://ssrn.com/abstract=2630544

Joan Costa-Font

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://https://joancostaifont.org/

Martin Karlsson

University of Duisburg-Essen ( email )

Henning Øien (Contact Author)

University of Oslo ( email )

PO Box 6706 St Olavs plass
Oslo, N-0317
Norway

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