Poor labour market prospects due to intensive caregiving? Childcare and eldercare among welfare recipients in Germany

Abstract

Despite the favourable economic situation in Germany over the last decade, the number of welfare recipients (~5 million) remained at a persistently high level. One factor limiting individuals' abilities to exit welfare dependency into employment is informal care. This article analyses two aspects of informal care: childcare, considering the number of caregivers in a given family constellation, and the amount of time spent on eldercare. A panel of survey data with comprehensive information on welfare recipients is used. The waves from 2006 to 2017 are included. The results suggest that the chances of exiting welfare dependency for those in jobs covering needs are strongly impacted by the intensity of caregiving. Single parents, as well as welfare recipients who spend >10 h/wk on eldercare, especially persons providing both of these types of caregiving, have the lowest probabilities of leaving welfare dependency among all recipient groups.