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The Chicken or the Egg? Endogeneity in Labour Market Participation of Informal Carers in England
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The Chicken or the Egg? Endogeneity in Labour Market Participation of Informal Carers in England

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  • Heitmueller, Axel

    (Imperial College London)

Abstract

Informal care is a vital pillar of the British welfare state. A well-known fact in the small economic literature on informal care is the apparent negative relation between care responsibilities and labour market participation. Yet, caring and labour market participation may be endogenous. Using an instrumental variable approach and data from the British Household Panel Study for 2002 this paper shows that not accommodating for endogeneity in the labour market participation equation may significantly underestimate the impact care exhibits on the employment decision of informal carers. This is the more the case the smaller the choice of becoming a carer. Policy implications are derived.

Suggested Citation

  • Heitmueller, Axel, 2004. "The Chicken or the Egg? Endogeneity in Labour Market Participation of Informal Carers in England," IZA Discussion Papers 1366, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1366
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    More about this item

    Keywords

    labour market participation; endogeneity; informal care; instrumental variable approach;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General

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