Effects of informal eldercare on female labor supply in different European welfare states

Abstract

Using advanced panel data methods on ECHP (European Community Household Panel) data, female labor force participation at both the intensive and extensive margin is found to be negatively associated with informal caregiving to elderly. The effects of informal caregiving seem to be more negative in the Southern European countries, less negative in the Nordic countries, and in between these extremes in the Central European countries included in the study. That is, not only do women in some countries provide more care, the care they provide also has a stronger negative correlation with the probability of being employed and the number of hours worked. It is argued in this paper that a candidate explanation for the phenomenon of lower marginal effects in countries with more formal care and less pronounced gendered care norms has to do with the degree of coercion in the caring decision.