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Publikasjon

Labor Supply When Parents Are in Need of Care

Forfattere: Lizardi, Eduardo Ramirez, Elisabeth Fevang, Snorre Kverndokk, Knut Røed
Publisert: 2026
Sammendrag: Using Norwegian administrative register data, we show that having a lone parent in the terminal stage of life has a small negative effect on the offspring’s labor supply, both at the extensive and the intensive margins. While the effects at the intensive margin are reversed after the parent’s demise, the negative employment effects are not. To investigate the potential for publicly provided long-term care to mitigate the influence of having a care needing parent, we also study the offspring labor supply around the time of a lone parent’s admission to a nursing home. As the demand for family-provided care most likely reaches its maximum in the period just prior to nursing home admission, we hypothesize that labor supply may be depressed in this period but then pick up afterwards. The empirical analysis confirms the decline prior to the event but rejects the hypothesis that it returns to its baseline level afterwards. Instead, it continues to decline. We present evidence indicating that labor supply changes around the times of parental death and admission to a nursing home are primarily driven by income effects related to a realized or forthcoming inheritance. Given the scale and quality of publicly provided longterm care in Norway, we conclude that having a parent in need of care does not noticeably affect offspring’s labor supply. However, we find some evidence that short-term absence from work increases around the times of a parent’s death or admission to a nursing home, particularly for daughters.
Prosjekt: 4135 Combining Work and Care for Older Parents
Referanse: Lizardi, Eduardo Ramirez, Elisabeth Fevang, Snorre Kverndokk, Knut Røed, 2026, «Labor Supply When Parents Are in Need of Care», Andre skriftserier, IZA DP no 18508
JEL Codes: J14, J22
Keywords: long-term care, labor supply of offspring, inheritance
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