Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers
We still know little about what motivates the informal care arrangements provided in old age. Evidence from demand-side subsidies such as unconditional caregiving allowances (cash benefits designed either to incentivize the purchase of care, or compensate for the loss of employment of informal caregivers) provide an opportunity to gain a further understanding of the matter. We exploit a quasi-natural experiment to identify the effects of the inception in 2007 (and reduction in 2012) of a universal caregiving allowance on the supply of informal care, and subsequent intergenerational transfer flows. We find evidence of a 30% rise in informal caregiving, which amounts to 27% of long-term care expenditure, and an increase (reduction) in downstream (upstream) intergenerational transfers of 29% (and 15%). The effects were attenuated by a subsequent policy intervention; the reduction of the subsidy amidst austerity cuts in 2012. Individuals in middle and lower income and wealthy quintiles mainly drive these effects.
Date:
15 May 2017, 15:00 (Monday, 4th week, Trinity 2017)
Venue:
Gibson Building, Woodstock Road OX2 6HE
Venue Details:
Room 3
Speaker:
Sergi Jimenez (Universitat Pompeu Fabra)
Organising department:
Nuffield Department of Primary Care Health Sciences
Organiser:
Catia Nicodemo (University of Oxford, Nuffield Department of Primary Care Health Sciences. Research Fellow, Centre for Health Service Economics & Organisation)
Part of:
Nuffield Department of Primary Care Health Sciences Seminars
Booking required?:
Not required
Audience:
Members of the University only
Editors:
Dan Richards-Doran,
Jessy Morton,
Catia Nicodemo
