Caring for Carers? The Effect of Public Subsidies on the Wellbeing of Unpaid Carers

49 Pages Posted: 15 Jun 2022 Last revised: 18 Oct 2022

See all articles by Joan Costa-Font

Joan Costa-Font

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

Francesco D'Amico

University of Rome Tor Vergata

Cristina Vilaplana-Prieto

University of Murcia

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Abstract

We study the effect of long-term care (LTC) subsidies and supports on the wellbeing of unpaid caregivers. We draw on evidence from a policy intervention, that universalized previously means-tested caregiving supports in Scotland, known as free personal care (FPC). We document causal evidence of an increase in the well-being (happiness) of unpaid carers after the introduction of FPC. Our estimates suggest economically relevant improvements in the happiness (12pp increase in subjective wellbeing) among caregivers exposed to FPC and that provide at least 35 hours of care per week. Consistently, these results are larger among women and non-actively employed caregivers (17pp increase in happiness). Estimates are not driven by selection into caregiving (we find similar wellbeing effects among caregivers at baseline and caregivers throughout the sample), and are driven by income effects of FPC among caregivers.

Keywords: caregiving, long-term care subsidies, subjective wellbeing, caregiver's wellbeing, Scotland

JEL Classification: 118, J22

Suggested Citation

Costa-Font, Joan and D'Amico, Francesco and Vilaplana-Prieto, Cristina, Caring for Carers? The Effect of Public Subsidies on the Wellbeing of Unpaid Carers. IZA Discussion Paper No. 15369, Available at SSRN: https://ssrn.com/abstract=4136926

Joan Costa-Font (Contact Author)

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

United Kingdom

Francesco D'Amico

University of Rome Tor Vergata ( email )

Via di Tor Vergata
Rome, Lazio 00133
Italy

Cristina Vilaplana-Prieto

University of Murcia

Avda Teniente Flomesta, 5
Murcia, Murcia 30100
Spain

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