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Dynamic wage and employment effects of elder parent care

This article formulates and estimates a dynamic discrete choice model of elder parent care and work to analyze how caregiving affects a woman's current and future labor force participation and wages. The model incorporates parental health changes, human capital accumulation, and job offer availability. The estimates indicate that women face low probabilities of returning to work or increasing work hours after a caregiving spell. I use the estimated model to simulate the caregiving, employment, and welfare effects of a longer unpaid work leave than currently available under the Family and Medical Leave Act, a paid leave, and a caregiver allowance.

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Additional Titles
International Economic Review

Key Information

Type of Reference
Jour
ISBN/ISSN
0020-6598
Resource Database
Web of science
Publication Year
2015
Issue Number
1
Volume Number
56
Start Page
63-93