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The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*

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The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*. / Hollingsworth, B.; Ohinata, A.; Picchio, M. et al.
In: Oxford Bulletin of Economics and Statistics, Vol. 84, No. 4, 31.08.2022, p. 933-960.

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Hollingsworth, B, Ohinata, A, Picchio, M & Walker, I 2022, 'The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*', Oxford Bulletin of Economics and Statistics, vol. 84, no. 4, pp. 933-960. https://doi.org/10.1111/obes.12473

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Hollingsworth B, Ohinata A, Picchio M, Walker I. The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*. Oxford Bulletin of Economics and Statistics. 2022 Aug 31;84(4):933-960. Epub 2021 Dec 17. doi: 10.1111/obes.12473

Author

Hollingsworth, B. ; Ohinata, A. ; Picchio, M. et al. / The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*. In: Oxford Bulletin of Economics and Statistics. 2022 ; Vol. 84, No. 4. pp. 933-960.

Bibtex

@article{6dd31fd0c20b4d0c80a18a4382226e28,
title = "The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*",
abstract = "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.",
author = "B. Hollingsworth and A. Ohinata and M. Picchio and I. Walker",
note = "Export Date: 4 January 2022 Correspondence Address: Ohinata, A.; Department of Economics, United Kingdom; email: ao160@le.ac.uk Funding details: Medical Research Council, MRC, MR/K022083/1 Funding text 1: Asako Ohinata, Bruce Hollingsworth and Ian Walker gratefully acknowledge financial support from the UK Medical Research Council (MR/K022083/1). References: Adda, J., Berlinski, S., Machin, S., Short-run economic effects of the Scottish smoking ban (2007) International Journal of Epidemiology, 36, pp. 149-154; Arntz, M., Thomsen, S.L., Crowding out informal care? Evidence from a field experiment in Germany (2011) Oxford Bulletin of Economics and Statistics, 73, pp. 398-427; (2001) Free Care Deal for Elderly People, , http://news.bbc.co.uk/1/hi/scotland/1559427.stm, 24 September)., BBC. Retrieved from; Beesley, L., (2006) Informal Care in England, , Wanless social care review; Bell, D.N., Bowes, A., Heitmueller, A., (2007) Did the Introduction of Free Personal Care in Scotland Result in a Reduction of Informal Care?, , WDA-HSG Discussion Paper 2007-3; Besley, T., Coate, S., Public provision of private goods and the redistribution of income (1991) American Economic Review, 81, pp. 979-984; Bolin, K., Lindgren, B., Lundborg, P., Informal and formal care among single-living elderly in Europe (2008) Health Economics, 17, pp. 393-409; Bonsang, E., Does informal care from children to their elderly parents substitute for formal care in Europe? (2009) Journal of Health Economics, 28, pp. 143-154; Cameron, A.C., Gelbach, J.B., Miller, D.L., Bootstrap-based improvements for inference with clustered errors (2008) Review of Economics and Statistics, 90, pp. 414-427; Carmichael, F., Charles, S., The opportunity costs of informal care: does gender matter? (2003) Journal of Health Economics, 22, pp. 781-803; Clay, S., Evans, D., Herring, I., Sullivan, J., Vekaria, R., (2016) Family Resources Survey, United Kingdom, 2010/11, , June)., Department for Work and Pensions, London; Costa-Font, J., Jim{\'e}nez-Mart{\'i}n, S., Vilaplana, C., (2018) Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers, , IZA DP 11774; De Chaisemartin, C., d{\textquoteright}Haultfoeuille, X., Fuzzy differences-in-differences (2018) The Review of Economic Studies, 85, pp. 999-1028; De Chaisemartin, C., d{\textquoteright}Haultfoeuille, X., (2021) Difference-in-Differences Estimators of Intertemporal Treatment Effects, , https://arxiv.org/pdf/2007.04267.pdf, Working paper, lastly retrieved on 08/09/2021; (2002) Family Resource Survey – Question instructions 2002–2003 version, , http://doc.ukdataservice.ac.uk/doc/4803/mrdoc/pdf/4803userguide3.pdf, Retrieved from, (2020, November 26); Duranton, G., Monastiriotis, V., Mind the gaps: the evolution of regional earnings inequalities in the U.K., 1982–1997 (2002) Journal of Regional Sciences, 42, pp. 219-256; Ettner, S.L., The effect of the medicaid home care benefit on long-term care choices of the elderly (1994) Economic Inquiry, 32, pp. 103-127; Ettner, S.L., The impact of “parent care” on female labor supply decisions (1995) Demography, 32, pp. 63-80; Ettner, S.L., The opportunity costs of elder care (1996) Journal of Human Resources, 31, pp. 189-205; Goodman-Bacon, A., Difference-in-differences with variation in treatment timing (2021) Journal of Econometrics, 225, pp. 254-277; Hatton, T., Tani, M., Immigration and inter-regional mobility in the UK, 1982–2000 (2005) Economic Journal, 115, pp. F342-F358; Heitmueller, A., The chicken or the egg? Endogeneity in labour market participation of informal carers in England (2007) Journal of Health Economics, 26, pp. 536-559; Ikenwilo, D., A difference-in-differences analysis of the effect of free dental check-ups in scotland (2013) Social Science & Medicine, 83, pp. 10-18; Inman, P., (2002) Free and Easy for the Scots, , http://www.theguardian.com/society/2002/mar/23/longtermcare.housinginretirement3, The Guardian, London, Retrieved from; Karlsberg Schaffer, S., The effect of free personal care for the elderly on informal caregiving (2015) Health Economics, 24, pp. 104-117; Keating, M., Stevenson, L., Cairney, P., Taylor, K., Does devolution make a difference? Legislative output and policy divergence in Scotland (2003) Journal of Legislative Studies, 9, pp. 110-139; Lechner, M., Rodriguez-Planas, N., Fern{\'a}ndez Kranz, D., Difference-in-difference estimation by fe and ols when there is panel non-response (2016) Journal of Applied Statistics, 43, pp. 2044-2052; Leigh, A., Informal care and labor market participation (2010) Labour Economics, 17, pp. 140-149; Liang, K.-Y., Zeger, S.L., Longitudinal data analysis using generalized linear models (1986) Biometrika, 73, pp. 13-22; L{\o}ken, K.V., Lundberg, S., Riise, J., Lifting the burden: formal care of the elderly and labor supply of adult children (2016) Journal of Human Resources, 52, pp. 247-271; Maher, J., Green, H., (2002) Carers 2000, , The Stationery Office, London; McNamee, P., (2006) Effects of Free Personal Care Policy in Scotland, , Examination of trends in the use of informal and formal care at home and in residential care., Securing Good Care for Older People Taking a Long-term View. Kings Fund, London, Appendix; (2013) Care Home Census 2013: Statistics on Adult Residents in Care Homes in Scotland, , Information Services Division Scotland, Edinburgh; Ohinata, A., Picchio, M., The financial support for long-term elderly care and household savings behaviour (2020) Oxford Economic Papers, 72, pp. 247-268; Pezzin, L.E., Kemper, P., Reschovsky, J., Does publicly provided home care substitute for family care? Experimental evidence with endogenous living arrangements (1996) Journal of Human Resources, 31, pp. 650-676; Propper, C., Sutton, M., Whitnall, C., Windmeijer, F., Incentives and targets in hospital care: evidence from a natural experiment (2010) Journal of Public Economics, 94, pp. 318-335; (2004) Guidance on Single Shared Assessment of Community Care Needs, , Scottish Executive, Edinburgh; Van Houtven, C.H., Coe, N.B., Skira, M.M., The effect of informal care on work and wages (2013) Journal of Health Economics, 32, pp. 240-252; Van Houtven, C.H., Norton, E.C., Informal care and health care use of older adults (2004) Journal of Health Economics, 23, pp. 1159-1180; Van Houtven, C.H., Norton, E.C., Informal care and Medicare expenditures: testing for heterogeneous treatment effects (2008) Journal of Health Economics, 27, pp. 134-156",
year = "2022",
month = aug,
day = "31",
doi = "10.1111/obes.12473",
language = "English",
volume = "84",
pages = "933--960",
journal = "Oxford Bulletin of Economics and Statistics",
issn = "0305-9049",
publisher = "Wiley-Blackwell",
number = "4",

}

RIS

TY - JOUR

T1 - The Impacts of Free Universal Elderly Care on the Supply of Informal Care and Labour Supply*

AU - Hollingsworth, B.

AU - Ohinata, A.

AU - Picchio, M.

AU - Walker, I.

N1 - Export Date: 4 January 2022 Correspondence Address: Ohinata, A.; Department of Economics, United Kingdom; email: ao160@le.ac.uk Funding details: Medical Research Council, MRC, MR/K022083/1 Funding text 1: Asako Ohinata, Bruce Hollingsworth and Ian Walker gratefully acknowledge financial support from the UK Medical Research Council (MR/K022083/1). References: Adda, J., Berlinski, S., Machin, S., Short-run economic effects of the Scottish smoking ban (2007) International Journal of Epidemiology, 36, pp. 149-154; Arntz, M., Thomsen, S.L., Crowding out informal care? Evidence from a field experiment in Germany (2011) Oxford Bulletin of Economics and Statistics, 73, pp. 398-427; (2001) Free Care Deal for Elderly People, , http://news.bbc.co.uk/1/hi/scotland/1559427.stm, 24 September)., BBC. Retrieved from; Beesley, L., (2006) Informal Care in England, , Wanless social care review; Bell, D.N., Bowes, A., Heitmueller, A., (2007) Did the Introduction of Free Personal Care in Scotland Result in a Reduction of Informal Care?, , WDA-HSG Discussion Paper 2007-3; Besley, T., Coate, S., Public provision of private goods and the redistribution of income (1991) American Economic Review, 81, pp. 979-984; Bolin, K., Lindgren, B., Lundborg, P., Informal and formal care among single-living elderly in Europe (2008) Health Economics, 17, pp. 393-409; Bonsang, E., Does informal care from children to their elderly parents substitute for formal care in Europe? (2009) Journal of Health Economics, 28, pp. 143-154; Cameron, A.C., Gelbach, J.B., Miller, D.L., Bootstrap-based improvements for inference with clustered errors (2008) Review of Economics and Statistics, 90, pp. 414-427; Carmichael, F., Charles, S., The opportunity costs of informal care: does gender matter? (2003) Journal of Health Economics, 22, pp. 781-803; Clay, S., Evans, D., Herring, I., Sullivan, J., Vekaria, R., (2016) Family Resources Survey, United Kingdom, 2010/11, , June)., Department for Work and Pensions, London; Costa-Font, J., Jiménez-Martín, S., Vilaplana, C., (2018) Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers, , IZA DP 11774; De Chaisemartin, C., d’Haultfoeuille, X., Fuzzy differences-in-differences (2018) The Review of Economic Studies, 85, pp. 999-1028; De Chaisemartin, C., d’Haultfoeuille, X., (2021) Difference-in-Differences Estimators of Intertemporal Treatment Effects, , https://arxiv.org/pdf/2007.04267.pdf, Working paper, lastly retrieved on 08/09/2021; (2002) Family Resource Survey – Question instructions 2002–2003 version, , http://doc.ukdataservice.ac.uk/doc/4803/mrdoc/pdf/4803userguide3.pdf, Retrieved from, (2020, November 26); Duranton, G., Monastiriotis, V., Mind the gaps: the evolution of regional earnings inequalities in the U.K., 1982–1997 (2002) Journal of Regional Sciences, 42, pp. 219-256; Ettner, S.L., The effect of the medicaid home care benefit on long-term care choices of the elderly (1994) Economic Inquiry, 32, pp. 103-127; Ettner, S.L., The impact of “parent care” on female labor supply decisions (1995) Demography, 32, pp. 63-80; Ettner, S.L., The opportunity costs of elder care (1996) Journal of Human Resources, 31, pp. 189-205; Goodman-Bacon, A., Difference-in-differences with variation in treatment timing (2021) Journal of Econometrics, 225, pp. 254-277; Hatton, T., Tani, M., Immigration and inter-regional mobility in the UK, 1982–2000 (2005) Economic Journal, 115, pp. F342-F358; Heitmueller, A., The chicken or the egg? Endogeneity in labour market participation of informal carers in England (2007) Journal of Health Economics, 26, pp. 536-559; Ikenwilo, D., A difference-in-differences analysis of the effect of free dental check-ups in scotland (2013) Social Science & Medicine, 83, pp. 10-18; Inman, P., (2002) Free and Easy for the Scots, , http://www.theguardian.com/society/2002/mar/23/longtermcare.housinginretirement3, The Guardian, London, Retrieved from; Karlsberg Schaffer, S., The effect of free personal care for the elderly on informal caregiving (2015) Health Economics, 24, pp. 104-117; Keating, M., Stevenson, L., Cairney, P., Taylor, K., Does devolution make a difference? Legislative output and policy divergence in Scotland (2003) Journal of Legislative Studies, 9, pp. 110-139; Lechner, M., Rodriguez-Planas, N., Fernández Kranz, D., Difference-in-difference estimation by fe and ols when there is panel non-response (2016) Journal of Applied Statistics, 43, pp. 2044-2052; Leigh, A., Informal care and labor market participation (2010) Labour Economics, 17, pp. 140-149; Liang, K.-Y., Zeger, S.L., Longitudinal data analysis using generalized linear models (1986) Biometrika, 73, pp. 13-22; Løken, K.V., Lundberg, S., Riise, J., Lifting the burden: formal care of the elderly and labor supply of adult children (2016) Journal of Human Resources, 52, pp. 247-271; Maher, J., Green, H., (2002) Carers 2000, , The Stationery Office, London; McNamee, P., (2006) Effects of Free Personal Care Policy in Scotland, , Examination of trends in the use of informal and formal care at home and in residential care., Securing Good Care for Older People Taking a Long-term View. Kings Fund, London, Appendix; (2013) Care Home Census 2013: Statistics on Adult Residents in Care Homes in Scotland, , Information Services Division Scotland, Edinburgh; Ohinata, A., Picchio, M., The financial support for long-term elderly care and household savings behaviour (2020) Oxford Economic Papers, 72, pp. 247-268; Pezzin, L.E., Kemper, P., Reschovsky, J., Does publicly provided home care substitute for family care? Experimental evidence with endogenous living arrangements (1996) Journal of Human Resources, 31, pp. 650-676; Propper, C., Sutton, M., Whitnall, C., Windmeijer, F., Incentives and targets in hospital care: evidence from a natural experiment (2010) Journal of Public Economics, 94, pp. 318-335; (2004) Guidance on Single Shared Assessment of Community Care Needs, , Scottish Executive, Edinburgh; Van Houtven, C.H., Coe, N.B., Skira, M.M., The effect of informal care on work and wages (2013) Journal of Health Economics, 32, pp. 240-252; Van Houtven, C.H., Norton, E.C., Informal care and health care use of older adults (2004) Journal of Health Economics, 23, pp. 1159-1180; Van Houtven, C.H., Norton, E.C., Informal care and Medicare expenditures: testing for heterogeneous treatment effects (2008) Journal of Health Economics, 27, pp. 134-156

PY - 2022/8/31

Y1 - 2022/8/31

N2 - 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.

AB - 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.

U2 - 10.1111/obes.12473

DO - 10.1111/obes.12473

M3 - Journal article

VL - 84

SP - 933

EP - 960

JO - Oxford Bulletin of Economics and Statistics

JF - Oxford Bulletin of Economics and Statistics

SN - 0305-9049

IS - 4

ER -