The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model

It is well acknowledged that the intensity of caregiving affects the labour force participation of caregivers. The literature so far has not, however, been able to control effectively for the endogeneity of caregiving intensity. This paper contributes by dealing with the endogeneity of unpaid caregi...

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Main Authors: Nguyen, Ha, Connelly, L.
Format: Journal Article
Published: Elsevier 2014
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/27608
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author Nguyen, Ha
Connelly, L.
author_facet Nguyen, Ha
Connelly, L.
author_sort Nguyen, Ha
building Curtin Institutional Repository
collection Online Access
description It is well acknowledged that the intensity of caregiving affects the labour force participation of caregivers. The literature so far has not, however, been able to control effectively for the endogeneity of caregiving intensity. This paper contributes by dealing with the endogeneity of unpaid caregiving intensity when examining its impact on the labour force participation of caregivers. We distinguish between care provided to people who cohabit with the care recipient and care provided to recipients who reside elsewhere, as well as between primary and secondary caring roles. We address the endogeneity of selection in various care intensity roles via an instrumental variables approach, using the health status of potential care recipients as instruments. Data from wave 8 of the Household Income and Labour Dynamics in Australia survey which was undertaken in 2008 are used. We focus on a sample of 7845 working age males and females. Ruling out the endogeneity of any caregiving intensity role, we find that caregiving has a significant deterrent effect on caregivers' employment. This deterrent effect however is concentrated among those who identify as the main caregiver and the result appears to be the same irrespective of gender. Providing care as the main caregiver reduces the probability of employment by approximately 12 percentage points for both males and females, regardless of whether or not the caregivers cohabit with the care recipients. By contrast, we find no statistically significant impact of providing care as a secondary caregiver on the employment probabilities of either males or females. These results are germane to the development of policies that may affect informal caregiving and, thereby, the labour force decisions of carers.
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spelling curtin-20.500.11937-276082017-09-13T15:07:52Z The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model Nguyen, Ha Connelly, L. Informal care Labour force participation Multinomial endogenous treatment Instrumental variables Australia It is well acknowledged that the intensity of caregiving affects the labour force participation of caregivers. The literature so far has not, however, been able to control effectively for the endogeneity of caregiving intensity. This paper contributes by dealing with the endogeneity of unpaid caregiving intensity when examining its impact on the labour force participation of caregivers. We distinguish between care provided to people who cohabit with the care recipient and care provided to recipients who reside elsewhere, as well as between primary and secondary caring roles. We address the endogeneity of selection in various care intensity roles via an instrumental variables approach, using the health status of potential care recipients as instruments. Data from wave 8 of the Household Income and Labour Dynamics in Australia survey which was undertaken in 2008 are used. We focus on a sample of 7845 working age males and females. Ruling out the endogeneity of any caregiving intensity role, we find that caregiving has a significant deterrent effect on caregivers' employment. This deterrent effect however is concentrated among those who identify as the main caregiver and the result appears to be the same irrespective of gender. Providing care as the main caregiver reduces the probability of employment by approximately 12 percentage points for both males and females, regardless of whether or not the caregivers cohabit with the care recipients. By contrast, we find no statistically significant impact of providing care as a secondary caregiver on the employment probabilities of either males or females. These results are germane to the development of policies that may affect informal caregiving and, thereby, the labour force decisions of carers. 2014 Journal Article http://hdl.handle.net/20.500.11937/27608 10.1016/j.socscimed.2013.10.031 Elsevier restricted
spellingShingle Informal care
Labour force participation
Multinomial endogenous treatment
Instrumental variables
Australia
Nguyen, Ha
Connelly, L.
The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title_full The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title_fullStr The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title_full_unstemmed The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title_short The effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
title_sort effect of unpaid caregiving intensity on labour force participation: results from a multinomial endogenous treatment model
topic Informal care
Labour force participation
Multinomial endogenous treatment
Instrumental variables
Australia
url http://hdl.handle.net/20.500.11937/27608