The share of the population aged 80 and older will double by 2050. This development spurs a considerable increase in the demand for long-term care. Supporting informal care provision by family members is the most common policy choice in European countries. This form of care is regarded to be less expensive than formal care in nursing homes. New research by RWI on European data shows: Family caregiving has serious lasting effects on the employment probability of the caregiver. Policy makers need to consider these long-term costs when designing interventions to meet the challenges caused by demographic change.