Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202024 
Year of Publication: 
2019
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 1051
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
In this paper, I estimate a dynamic structural model of labor supply, retirement, and informal care supply, incorporating labor market frictions and the German tax and benefit system. I find that informal elderly care has adverse and persistent effects on labor market outcomes and therefore negatively affects lifetime earnings, future pension benefits, and individuals' well-being. These consequences of caregiving are heterogeneous and depend on age, previous earnings, and institutional regulations. Policy simulations suggest that, even though fiscally costly, public long-term care insurance can offset the personal costs of caregiving to a large extent - in particular for low-income individuals.
Subjects: 
long-term care
informal care
long-term care insurance
labor supply
retirement
pension benefits
structural model
JEL: 
I18
I38
J14
J22
J26
Document Type: 
Working Paper

Files in This Item:
File
Size
850.71 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.