White Rose University Consortium logo
University of Leeds logo University of Sheffield logo York University logo

Informal and formal care in Europe

Viitanen, T.K. (2007) Informal and formal care in Europe. Working Paper. Department of Economics, University of Sheffield ISSN 1749-8368


Download (207Kb)


Government expenditure on formal residential care and home-help services for the elderly significantly reduces 45-59 year old women´s informal care-giving affecting both the extensive and the intensive margin. Allowing for country fixed-effects and country-specific trends and correcting for attrition, the estimates - based on the European Community Household Panel - imply that a 1000 Euro increase in the government expenditure on formal residential care and home-help services for the elderly decreases the probability of informal care-giving outside of the caregiver´s household by 6 percentage points. Formal care substitutes for informal care that is undertaken outside of the carer´s own household, but does not substitute for intergenerational household formation. A simulation exercise shows that an increase in government formal care expenditure can be used to increase the labour force participation rates and a back-of-envelope cost-benefit calculation suggests the policy to be cost-effective.

Item Type: Monograph (Working Paper)
Copyright, Publisher and Additional Information: The Sheffield Economics Research Paper (SERP) series offers a forum for the research output of the academic staff and research students of the Department of Economics, University of Sheffield. Papers are reviewed for quality and presentation by a departmental editor. However, the contents and opinions expressed remain the responsibility of the authors. All papers may be downloaded free on the understanding that the contents are preliminary and therefore permission from the author(s) should be sought before they are referenced.
Keywords: informal care, formal care, ECHP, attrition bias
Institution: The University of Sheffield
Academic Units: The University of Sheffield > Faculty of Social Sciences (Sheffield) > Department of Economics (Sheffield) > Sheffield Economics Research Papers Series
Depositing User: Repository Officer
Date Deposited: 21 Oct 2009 16:12
Last Modified: 12 Jun 2014 05:03
Published Version: http://www.shef.ac.uk/economics/research/serps/yea...
Status: Published
Publisher: Department of Economics, University of Sheffield
Identification Number: Sheffield Economic Research Paper Series 2007010
URI: http://eprints.whiterose.ac.uk/id/eprint/9967

Actions (repository staff only: login required)