Informal Care and Labor Supply
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Fevang, Elisabeth, Snorre Kverndokk, Knut Røed
Number in series: 8
Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring’s labor market activity. The employment propensity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent’s death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the parent’s demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.
Elderly care, labor supply, ageing, inheritance
Project:Oppdragsgiver: Norges forskningsråd
Frisch prosjekt: 1135 - The public long term care and its effect on labour market participation for elderly workers