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About the article
Published Online: 2013-07-16
Colombo et al. (2011) state that in Germany the shares of people aged over 65 and 80 are 20% and 5%, respectively; the corresponding data for France are 16.9% and 5.5% and those for Sweden are 18% and 5.3%.
In some countries, there is a compulsory long-term-care insurance as part of the social security system. However, it covers part of the costs only and is mostly means tested [see Colombo et al. (2011)].
For a recent overview of these considerations, see, e.g. Fanti and Gori (2012).
Stern and co-authors [see, for instance, Engers and Stern (2002) and Byrne et al. (2009)] focus on intra-familial bargaining and choose a finer-grained model of the period-2 household production. They do, however, not connect child-care and long-term care. As our model aims at assessing the average effect of an institutional frame and not the intra-familial mechanisms, we omit these aspects. In the same spirit, intra-household time allocation is not included to keep the model as simple and to keep the focus on the (household–external) tradeoff between household time and market time.
The integer constraint on the number of children is disregarded.
Derivatives are indicated by subscripts.
Due to the absence of altruism toward the children, the mother neglects the effect that fertility decisions have on the burden of long-term care services provided by their children.
If were 0, all these effects would also be 0.
Since our model makes ambiguous predictions, any result on the relative strength of these effects does not provide an empirical test of the model per se.
We left out those six women that had no full-time education at all.
Since Northern Ireland and East Germany are weighted separately, there are 29 country clusters.
We have not included the wage as more direct control for the opportunity costs of time and the value of the time endowment, because the survey provides only gross income and not enough information to simulate the tax burden. Furthermore, since no information on wages of non-employed women is provided, the number of observations would be much smaller and a selection bias would occur.
Working hours of formal employment are included in the Eurobarometer 67.3 survey, because the survey focused on health and undeclared work.
According to the OECD’s (2011b) collection of social indicators, the fertility rate in 2009 has been 1.99 in France, 1.36 in Germany, and 1.94 in Sweden.
Including migrants into the labor market to a bigger extent is another means. However, in a recent OECD study, Keeley (2009) shows the limits of such an inclusion.
Details on differences in these arrangements are described in Colombo et al. (2011).