Instrumental variable estimates of the burden of parental caregiving

Abstract

This study examines the impact of informal care provision for older parents on carer’s health and labour market outcomes in England. I evaluate the validity of previously used instrumental variables for care provision. The results suggest that concerns about the validity of these instruments can be partly mitigated by considering variation in the timing rather than the incidence of informal care provision. Effects of informal care provision on health are positive for men and mostly insignificant for women. Informal care provision leads to a reduction in working hours for women, but does not affect labour force participation or labour income.