Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Auriol, Emmanuelle / Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias / Zulehner, Christine

IMPACT FACTOR 2017: 0.306
5-year IMPACT FACTOR: 0.492

CiteScore 2017: 0.50

SCImago Journal Rank (SJR) 2017: 0.414
Source Normalized Impact per Paper (SNIP) 2017: 0.531

See all formats and pricing
More options …
Volume 14, Issue 2


Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Working Mums and Informal Care Givers: The Anticipation Effect

Evelyn Korn / Matthias Wrede
Published Online: 2013-07-16 | DOI: https://doi.org/10.1515/bejeap-2012-0023


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 and 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 survey data, the paper provides some evidence that in the member states of the European Union the consumption-smoothing effect is dominant.

Keywords: long-term care; child care; female labor supply; fertility

JEL Classification: J13; D91; I13


  • Anderson, Deborah J., Melissa Binder, and Kate Krause. 2002. “The Motherhood Wage Penalty: Which Mothers Pay It and Why?” American Economic Review 92:354–58.CrossrefGoogle Scholar

  • Apps, Patricia, and Ray Rees. 2004. “Fertility, Taxation, and Family Policy.” Scandinavian Journal of Economics 106:745–63.CrossrefGoogle Scholar

  • Boldrin, Michele, Mariacristina De Nardi, and Larry E. Jones. 2005. “Fertility and Social Security,” NBER Working Paper 11146.Google Scholar

  • Bolin, Kristian, Bjorn Lindgren, and Petter Lundborg. 2008. “Informal and Formal Care Among Single-Living Elderly in Europe.” Health Economics 17:393–409.CrossrefPubMedWeb of ScienceGoogle Scholar

  • Bonsang, Eric. 2009. “Does Informal Care From Children to their Elderly Parents Substitute for Formal Care in Europe?” Journal of Health Economics 28:143–54.CrossrefWeb of SciencePubMedGoogle Scholar

  • Byrne, David, Michelle S. Goeree, Bridget Hiedemann, and Steven Stern. 2009. “Formal Home Health Care, Informal Care, and Family Decision Making.” International Economic Review 50:1205–42.Web of ScienceCrossrefGoogle Scholar

  • Charles, Kerwin Kofi, and Purvi Sevak. 2005. “Can Family Caregiving Substitute for Nursing Home Care?” Journal of Health Economics 24:1174–90.CrossrefPubMedGoogle Scholar

  • Cigno, Alessandro. 1986. “Fertility and the Tax-Benefit System: A Reconsideration of the Theory of Family Taxation.” Economic Journal 96:1035–51.CrossrefGoogle Scholar

  • Cigno, Alessandro, Luca Casolaro, and Furio Camillo Rosati. 2003. “The Impact of Social Security on Saving and Fertility in Germany.” Finanzarchiv 59:189–211.CrossrefGoogle Scholar

  • Cigno, Alessandro and Furio Camillo Rosati. 1996. “Jointly Determined Saving and Fertility Behaviour: Theory, and Estimates for Germany, Italy, UK and USA.” European Economic Review 40:1561–89.CrossrefGoogle Scholar

  • Cigno, Allessandro, and Martin Werding. 2007. Children and Pensions. Cambridge, MA, and London: CESifo Book Series, MIT Press.Google Scholar

  • Cohen, Alma, Rajeev Dehejia, and Dmitri Romanov. 2007. “Do Financial Incentives Affect Fertility?” NBER Working Paper 13700.Google Scholar

  • Colombo, Francesca, Ana Llena-Nozal, Jérôme Mercier, and Frits Tjadens. 2011. “Help Wanted?: Providing and Paying for Long-Term Care.” Paris: OECD Health Policy Studies, OECD Publishing.Google Scholar

  • Del Boca, Daniela. 2002. “The Effect of Child Care and Part-time Opportunities on Participation and Fertility Decisions in Italy.” Journal of Population Economics 15:549–73.CrossrefGoogle Scholar

  • Engers, Maxim, and Steven Stern. 2002. “Long-Term Care and Family Bargaining.” International Economic Review 43:73–114.CrossrefGoogle Scholar

  • Fanti, Luciano, and Luca Gori. 2012. “Fertility and PAYG Pensions in the Overlapping Generations Model.” Journal of Population Economics 25:955–61.CrossrefWeb of ScienceGoogle Scholar

  • Fernandez, Jose-Luis, Julien Forder, and Martin Knapp. 2011. “Long-Term Care.” In The Oxford Handbook of Health Economics, edited by Sherry Glied and Peter C. Smith, 578–601. Oxford: Oxford University Press.Google Scholar

  • Grabowski, David C., Edward C. Norton, and Courtney H. Van Houtven. 2012. “Informal Care.” In The Elgar Companion to Health Economics, second edition, edited by Andrew M. Jones, 318–28. Cheltenham (UK): Edward Elgar Publishing.Google Scholar

  • Gurrίa, Angel. 30 January 2009. “Strategic Options to Finance Pensions and Healthcare in a Rapidly Ageing World.” Opening remarks by Angel Gurrίa, OECD Secretary-General, Davos (Industry Partners Session).Google Scholar

  • Hanaoka, Chie, and Edward C. Norton. 2008. “Informal and Formal Care for Elderly Persons: How Adult Childrens Characteristics Affect the Use of Formal Care in Japan.” Social Science & Medicine 67:1002–8.Web of ScienceCrossrefGoogle Scholar

  • Jones, Larry E., Alice Schoonbroodt, and Michele Tertilt. 2011. “Fertility Theories: Can They Explain the Negative Fertility-Income Relationship?” In Demography and the Economy, edited by John B. Shoven, 43–100. Chicago: University of Chicago Press.Google Scholar

  • Keeley, Brian. 2009. International Migration: The Human Face of Globalisation. Paris: OECD Publishing.Google Scholar

  • Laroque, Guy, and Bernard Salanié. 2008. “Does Fertility Respond to Financial Incentives?” CESifo Working Paper 2339.Google Scholar

  • Lo Sasso, Anthony T., and Richard W. Johnson. 2002. “Does Informal Care From Adult Children Reduce Nursing Home Admissions for the Elderly?” Inquiry 39:279–97.PubMedCrossrefGoogle Scholar

  • Mookherjee, Dilip, Silvia Prina, and Debraj Ray. 2012. “A Theory of Occupational Choice with Endogenous Fertility.” American Economic Journal: Microeconomics 4:1–34.Web of ScienceCrossrefGoogle Scholar

  • Moscovice, Ira, Gestur Davidson, and David McCaffrey. 1988. “Substitution of Formal and Informal Care for the Community-Based Elderly.” Medical Care 26:971–81.CrossrefGoogle Scholar

  • Norton, Edward C. 2003. “Long-Term Care.” In Handbook of Health Economics, edited by A.J. Culyer and J.P. Newhouse, 955–94. North-Holland: Elsevier.Google Scholar

  • OECD. 2011a. OECD Employment Outlook 2002. Paris: OECD Publishing.Google Scholar

  • OECD. 2011b. Society at a Glance – OECD Social Indicators. Paris: OECD Publishing.Google Scholar

  • Papacostas, Antonis. 2010. Eurobarometer 67.3: Health Care Service, Undeclared Work, EU Relations with Its Neighbor Countries, and Development Aid, May–June 2007. Inter-University Consortium for Political and Social Research (ICPSR). University of Michigan, Ann Arbor.Google Scholar

  • Pezzin, Liliana E., Peter Kemper, and James Reschovsky. 1996. “Does Publicly Provided Home Care Substitute for Family Care?: Experimental Evidence with Endogenous Living Arrangements.” Journal of Human Resources 31:650–76.CrossrefGoogle Scholar

  • Stern, Steven. 1995. “Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics.” Journal of Human Resources 30:551–80.CrossrefGoogle Scholar

  • Van Houtven, Courtney H., and Edward C. Norton. 2004. “Informal Care and Health Care Use of Older Adults.” Journal of Health Economics 23:1159–80.CrossrefPubMedGoogle Scholar

  • Van Houtven, Courtney H., and Edward C. Norton. 2008. “Informal Care and Medicare Expenditures: Testing for Heterogeneous Treatment Effects.” Journal of Health Economics 27:134–56.Web of ScienceCrossrefPubMedGoogle Scholar

  • Viitanen, Tarja K. 2010. “Informal Eldercare across Europe: Estimates from the European Community Household Panel.” Economic Analysis & Policy 40:149–78.Google Scholar

  • Waldfogel, Jane. 1997. “The Effect of Children on Women’s Wages.” American Sociological Review 62:209–17.CrossrefGoogle Scholar

  • Wilde, Elizabeth Ty, Lily Batchelder, and David T. Ellwood, “The Mommy Track Divides: The Impact of Childbearing on Wages of Women of Differing Skill Levels,” NBER Working Paper 16582.Google Scholar

About the article

Published Online: 2013-07-16

Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 14, Issue 2, Pages 473–498, ISSN (Online) 1935-1682, ISSN (Print) 2194-6108, DOI: https://doi.org/10.1515/bejeap-2012-0023.

Export Citation

©2014 by Walter de Gruyter Berlin / Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

Masaya Yasuoka
Journal of Economic Studies, 2019, Volume 46, Number 1, Page 18
Pierre Pestieau and Gregory Ponthiere
Journal of Health Economics, 2016, Volume 50, Page 340

Comments (0)

Please log in or register to comment.
Log in