Work

Labor supply and informal care responses to health shocks within couples: Evidence from the UK

Year: 2022

Type: article

Abstract: Shocks to health have been shown to reduce labor supply for the individual affected. Less is known about household self-insurance through a partner's response. Previous studies have presented inconclusive empirical evidence on the existence of a health-related Added Worker Effect, and results limited to labor and income responses. We use UK longitudinal data to investigate within households both the labor supply and informal care responses of an individual to the event of an acute health shock to their partner. Relying on the unanticipated timing of shocks, we combine Coarsened Exact Matching and Entropy Balancing algorithms with parametric analysis and exploit lagged outcomes to remove bias from observed confounders and time-invariant unobservables. We find no evidence of a health-related Added Worker Effect but a significant and sizable Informal Carer Effect. This holds irrespective of spousal labor market position or household financial status and ability to purchase formal care provision, suggesting that partners' substitute informal care provision for time devoted to leisure activities.

Source: Health Economics

DOI: 10.1002/hec.4604

Authors: Annarita Macchioni Giaquinto, Andrew M. Jones, Nigel Rice, Francesca Zantomio

Institutions: Food and Agriculture Organization of the United Nations, University of York, Monash University, Ca' Foscari University of Venice

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Good health and well-being

Open Access status: hybrid

Estimated APC paid: $4,700