Informal Care and Labor Supply

2008/8: Authors: Fevang, E., Kverndokk, S., Røed, K.,The Ragnar Frisch Centre for Economic Research, Oslo (PDF)

A lone parent in the terminal phase and after demise effect the offsprings employment activity; employment propensity, long term sickness, social security depency.

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Based on Norwegian register data we show that having a lone parent in the terminal phase of life significantly affects the offspring’s labor market activity. The employment propensity declines by around 1 percentage point among sons and 2 percentage points among daughters during the years just prior to the parent’s death, ceteris paribus. Long-term sickness absence increases sharply. The probability of being a long-term social security claimant (defined as being a claimant for at least three months during a year) rises with as much as 4 percentage points for sons and 2 percentage points for daughters. After the parent’s demise, earnings tend to rise for those still in employment while the employment propensity continues to decline. The higher rate of social security dependency persists for several years.

ISSN 1890-1735
ISBN 82-7756-193-8

Publisert 25. mai 2011 16:21 - Sist endret 7. okt. 2011 12:05