In this study, based on longitudinal data, we investigate whether Japanese middle‐aged men and women become less likely to have a job and whether their sense of well‐being decreases when they have a family member who needs care. We find a consistent negative impact of having a family member who needs care on employment, but no impact on subjective health and life satisfaction. Further, the differences‐in‐differences (DID) estimation, based on both unmatched and matched data, shows that the Long‐Term Care Insurance (LTCI) introduced in 2000 did not mitigate the adverse impact on the probability of being employed.

OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.