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43. Working Less to Take Care of Parents? Labor Market Effects of Family Long-Term Care in Four Latin American Countries

Author

Stampini, Marco, Oliveri, María Laura, Ibarrarán, Pablo, Londoño, Diana, Rhee, Ho June (Sean), and James, Gillinda M.

Subjects
J14, Costa Rica, J16, J21, female labor supply, J22, elderly care, time-use surveys, Long-Term Care (LTC), Colombia, J18, Latin America, ddc:330, care dependence, Chile, Mexican Health and Aging Study (MHAS), Mexico
Abstract

We use data from time-use surveys and the Mexican Health and Aging Study (MHAS) to analyze the relationship between family long-term care (LTC) and female labor supply in four Latin American countries. Time-use survey data from Chile, Colombia, Costa Rica and Mexico shows that: (i) women provide the vast majority of family LTC; (ii) consistently across countries, women who provide LTC are less likely to work, and those who do work less hours per week and have a double burden of work and LTC. Multivariate analysis of longitudinal MHAS data shows that, after accounting for both individual and time fixed effects, parents' need for LTC is associated with both a significant drop in the likelihood of working (by 2.42 percentage points) and a reduction in the number of hours worked among women ages 50–64 who remain employed (by 7.03%). This finding has important gender equality implications. Also, in a region that is aging faster than any other in the world, social trends make this family provision of LTC unsustainable, increasing the need for policy action.

Published
2020

44. Working less to take care of parents? Labor market effects of family long-term care in Latin America

Author

Stampini, Marco, Oliveri, María Laura, Ibarrarán, Pablo, Londoño, Diana, Rhee, Ho June (Sean), and James, Gillinda M.

Subjects
J14, Costa Rica, J16, J21, J22, elderly care, Female labor supply, time-use surveys, Long-Term Care (LTC), Colombia, J18, Latin America, ddc:330, care dependence, Chile, Mexican Health and Aging Study (MHAS), Mexico
Abstract

We use data from time-use surveys and the Mexican Health and Aging Study (MHAS) to analyze the relationship between the need to provide family long-term care (LTC) and womens labor supply in four Latin American countries. Descriptive analysis of time-use survey data from Chile, Colombia, Costa Rica and Mexico shows that: (i) women make up 63% to 84% of long-term family caregivers and account for 72% to 88% of total hours of LTC; (ii) consistently across countries, women who provide LTC are less likely to work, and those who do work less hours per week and have a double burden of work and LTC. Multivariate analysis of longitudinal MHAS data shows that, after accounting for both individual and time fixed effects, parents need for LTC is associated with both a significant drop in the likelihood of working (by 2.42 percentage points) and a reduction in the number of hours worked among women ages 5064 who remain employed (by 7.03%). This finding has important implications for gender equality. Also, in a region that is aging faster than any other in the world, social trends (e.g., smaller households with fewer children) make this provision of LTC within the home unsustainable, increasing the need for public policy action.

Published
2020

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