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Oxf Bull Econ Stat - 2021 - Hollingsworth - The Impacts of Free Universal Elderly Care on the Supply of Informal Care and.pdf (188.69 kB)

The impacts of free universal elderly care on the supply of informal care and labour supply

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journal contribution
posted on 2022-02-02, 15:09 authored by Bruce Hollingsworth, Asako Ohinata, Matteo Picchio, Ian Walker
This paper investigates the impact of introducing universal free formal personal care on informal caregiving behaviour in Scotland – in particular, we explore the extent to which free formal care might crowd out the supply of informal care. We estimate, in a difference-in-differences framework, that such a reform would: reduce the probability of co-residential informal caregiving (usually, provided by spouses) by around 18% and, conditional on co-residential caring, reduce such informal care by 1.3 hours per week. These estimates suggest that an additional hour of formal care displaces approximately 1 hour of such informal care. However, we find no displacement effect on extra-residential informal caring (often supplied by adult daughters). We also find evidence of increases in labour market participation and hours worked.

History

Citation

OXFORD BULLETIN OF ECONOMICS AND STATISTICS, 0305-9049 doi: 10.1111/obes.12473

Author affiliation

School of Business

Version

  • VoR (Version of Record)

Published in

Oxford Bulletin of Economics and Statistics

Publisher

Wiley

issn

0305-9049

Acceptance date

2021-11-08

Copyright date

2021

Available date

2022-02-02

Language

en

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