Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64844
Authors: 
Korn, Evelyn
Wrede, Matthias
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper: Social Protection 3931
Abstract: 
Fertility and the provision of long-term care are connected by an aspect that has not received attention so far: both are time consuming activities that can be produced within the household or bought at the market and are, thus, connected through the intertemporal budget constraint of the household that accounts for time and money. This paper models that link and analyzes the effect of intervention in the long-term-care market on female labor-market related decisions. It shows that women's fertility as well as their labor supply when young are affected by such policies. The overall effect can be decomposed into an opportunity-cost effect and a consumption-smoothing effect that each impact fertility as well as labor supply in opposite directions. Using European survey data, the paper shows that the consumption-smoothing effect is dominant.
Subjects: 
long-term care
child care
female labor supply
fertility
JEL: 
J13
D91
I13
Document Type: 
Working Paper

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