Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/185234 
Year of Publication: 
2018
Series/Report no.: 
IZA Discussion Papers No. 11774
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We study the effect of demand-side subsidies to old age care recipients on both caregiving and intergenerational transfer decisions. We exploit two quasi-natural experiments referring to the inception of a universal and unconditional caregiving allowance in 2007 and its subsequent reduction in 2012. We find that the introduction of a caregiving allowance of a magnitude up to 530€ in 2011 increased the probability of informal caregiving by 32% and the intensity of care in 13.5 days/year. Consistently, we find that downstream (upstream) intergenerational transfers increased (decreased) in a magnitude of 29% (15%). The effects concentrate among middle and lower income households and were attenuated by the reduction of the subsidy.
Subjects: 
caregiving
intergenerational transfers
unconditional transfer
difference-in-differences
long-term care
family transfers
exchange motivation
caregiving allowances
demand-side cash subsidies
JEL: 
I18
D14
G22
Document Type: 
Working Paper

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