Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/20663
Authors: 
Heitmüller, Axel
Year of Publication: 
2004
Series/Report no.: 
IZA Discussion paper series 1366
Abstract: 
Informal care is a vital pillar of the British welfare state. A well-known fact in the small economic literature on informal care is the apparent negative relation between care responsibilities and labour market participation. Yet, caring and labour market participation may be endogenous. Using an instrumental variable approach and data from the British Household Panel Study for 2002 this paper shows that not accommodating for endogeneity in the labour market participation equation may significantly underestimate the impact care exhibits on the employment decision of informal carers. This is the more the case the smaller the choice of becoming a carer. Policy implications are derived.
Subjects: 
instrumental variable approach
informal care
endogeneity
labour market participation
JEL: 
C10
J22
I11
Document Type: 
Working Paper

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