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

TitleThe Wage Elasticity of Informal Care Supply: Evidence from the Health and Retirement Study
Publication TypeReport
Year of Publication2008
AuthorsNizalova, O
InstitutionKyiv, Ukraine, Kyiv Economic Institute
Call Numbernewpubs20080908_Nizalova.pdf
KeywordsEmployment and Labor Force, Healthcare
Abstract

This paper analyzes the relationship between wages and supply of informal care to elderly parents. Unlike most of the previous research estimating wage elasticities of informal care supply, this study employs instrumental variable technique to account for the fact that the wage rate is likely to be measured with error and correlated with omitted variables. Based on the data from the 1998 wave of the Health and Retirement Study, the results show that the wage elasticity of informal care supply is negative and larger in magnitude than has been 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 the wage elasticity of informal care supply 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.

Endnote Keywords

Caregiving/Wages

Endnote ID

20960

Citation Key5721