Informal caregiving and the risk of material hardship in the United States

Abstract

Millions of people in the United States provide unpaid care to family and friends with long-term illnesses and disabilities. Research shows that informal caregiving can be beneficial for recipients of care, but taxing for those providing care. Studies have not explored associations between informal caregiving and the risk of experiencing different forms of material hardship. In this study, we use data from the Survey of Income and Program Participation (N = 31,633) to address this gap in the literature. The sample was drawn from a multistage-stratified sample of the civilian, non-institutionalised population of the United States. We analyse data that were collected in 2011 and find that providing informal care to others is associated with an increased risk of experiencing healthcare hardship, bill-paying hardship and food insecurity. Moreover, we find that household financial resources mediate the association between caregiving and material hardship. As a result, while caregiving households face a higher risk of experiencing material hardships at all income levels, the disparity is largest at low incomes and smallest at high incomes. The findings highlight the need for a stronger safety net for informal caregivers.

New Role, New Paycheck: The Impact on Women’s Wages When Becoming a Caregiver for an Aging Parent

“…Prior research shows that women caregivers are more likely to fall into poverty late in life, experience smaller asset growth, and have less retirement savings than non-caregivers (Butrica & Karamcheva, 2014; Wakabayashi & Donato, 2006). Informal caregiving is also associated with an increased risk of financial hardship and food insecurity, especially for those who are initially less financially stable (Campbell & Walker, 2021). One study estimated that the total loss in earnings caregivers experienced was $659,139 over their lifetimes, on average (Neal & Wagner, 2002).…”