In developing countries, the absence of universal social safety netsfrequently necessitates co-residence between older parents and adultchildren for the provision of elderly care. In this article we use the2000 Indonesian Family Life Survey (IFLS 3) to distinguish betweenco-residence with and care-giving for the elderly and examine the impactof care-giving for elderly household members on the labor supplydecisions of co-resident working-age adults. After controlling for thepotential endogeneity of co-residing decisions and the selection biasarising from such endogeneity, our results suggest that care-giving reducesthe margins of labor supply, both the intensive (working hours)and extensive (participation) margins. This effect is particularly strong in samples of female adults.
|Journal||Journal of Income Distribution|
|Publication status||Published - 2009|