Health of Elderly Parents, Their Children's Labor Supply, and the Role of Migrant Care Workers

Frimmel, Wolfgang; Halla, Martin; Paetzold, Jörg; Schmieder, Julia

doi:10.2139/ssrn.3706014

Cited by 6 publications

(10 citation statements)

References 31 publications

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“…Utilizing a difference-in-differences model and administrative data from the Netherlands they do not find significant effects on either employment or earnings. Frimmel et al (2020) focus on parental health shocks that increase care dependency abruptly and find a significant negative impact on the labor market activities of children. 8 This study also speaks to the literature that investigates the impact of parenthood on family labor supply, which shows sizeable effects on mothers' labor supply and earnings.…”

Section: Introductionmentioning

confidence: 99%

The Career Costs of Children's Health Shocks

Breivik

Costa-Ramón

2021

SSRN Journal

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We provide novel evidence on the impact of a child's health shock on parental labor market outcomes. To identify the causal effect, we leverage long panels of high-quality Finnish and Norwegian administrative data and exploit variation in the timing of the health shock. We do this by comparing parents across families in similar parental and child age cohorts whose children experienced a health shock at different ages. We show that these families have very similar characteristics and were following parallel trends before the event. This allows us to use a simple difference-in-differences model: we construct counterfactuals for treated households with families who experience the same shock a few years later. We find a sharp break in parents' earnings trajectories that becomes visible just after the shock. The negative effect is persistent and stronger for mothers than for fathers. We also document a substantial impact on parents' mental well-being. Our results suggest that the effect on maternal labor earnings results from the combination of the increased time needed to care for the child and the worsening of mothers' mental health.

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Section: Introductionmentioning

confidence: 99%

The Career Costs of Children's Health Shocks

Breivik

Costa-Ramón

2021

SSRN Journal

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“…5 5 Elder care given by family members may be combined with both formal and informal in‐home care. For example, using Austrian administrative data, Frimmel et al (2020) find that an abrupt health shock (stroke or heart attack) of a parent reduces adult children's labor supply, particularly that of daughters. Their work also gives insight into the role of immigration in mediating this relationship: during the period of study, the Austrian government exempted migrant care workers from migration restrictions for citizens of Central and Eastern EU member countries, resulting in a large increase in the supply of formal care provided by migrant workers.…”

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confidence: 99%

Immigrant labor and the institutionalization of the U.S.‐born elderly

Butcher

Moran

Watson

2022

Rev International Economics

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The U.S. population is aging. We examine whether immigration causally affects the likelihood that the U.S.-born elderly live in institutional settings. Using a shift-share instrument to identify exogenous variation in immigration, we find that a 10 percentage point increase in the less-educated foreign-born labor force share in a local area reduces institutionalization among the elderly by 1.5 and 3.8 percentage points for those aged 65+ and 80+, a 26%-29% effect relative to the mean. The estimates imply that a typical U.S.-born individual over age 65 in the year 2000 was 0.5 percentage points (10%) less likely to be living in an institution than would have been the case if immigration had remained at 1980 levels. We show that immigration affects the availability and cost of home services, including those provided by home health aides, gardeners and housekeepers, and other less-educated workers, reducing the cost of aging in the community.

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“…Lewis (2011) demonstrates that when there is more low-skilled labor available in the local labor market due to immigration, the choice of production technologies shifts toward less-educated labor, and Clemens, Lewis, and Postel (2018) find evidence that restricting immigrant labor supply affects agricultural technology 4 Elder care given by family members may be combined with both formal and informal in-home care. For example, using Austrian administrative data, Frimmel et al (2020) find that an abrupt health shock (stroke or heart attack) of a parent reduces adult children's labor supply, particularly that of daughters. Their work also gives insight into the role of immigration in mediating this relationship: during the period of study, the Austrian government exempted migrant care workers from migration restrictions for citizens of Central and Eastern EU member countries, resulting in a large increase in the supply of formal care provided by migrant workers.…”

Section: <Place Figure 1 Here> B the Production Of Elder Carementioning

confidence: 99%