Labor supply and informal care responses to health shocks within couples: Evidence from the UK.

ABSTRACT: Shocks to health have been shown to reduce labor supply for the individual affected. Less is known about household self-insurance through a partner's response. Previous studies have presented inconclusive empirical evidence on the existence of a health-related Added Worker Effect, and results limited to labor and income responses. We use UK longitudinal data to investigate within households both the labor supply and informal care responses of an individual to the event of an acute health shock to their partner. Relying on the unanticipated timing of shocks, we combine Coarsened Exact Matching and Entropy Balancing algorithms with parametric analysis and exploit lagged outcomes to remove bias from observed confounders and time-invariant unobservables. We find no evidence of a health-related

SUBMITTER: Macchioni Giaquinto A 

PROVIDER: S-EPMC9826460 | biostudies-literature | 2022 Dec

REPOSITORIES: biostudies-literature