Scandinavian Working Papers in Economics

HERO Online Working Paper Series,
University of Oslo, Health Economics Research Programme

No 2008:12: A model for supply of informal care to elderly parents

Elisabeth Fevang , Snorre Kverndokk () and Knut Røed
Additional contact information
Elisabeth Fevang: Ragnar Frisch Centre for Economic Research
Snorre Kverndokk: Ragnar Frisch Centre for Economic Research, Postal: Gaustadalléen 21, 0349 Oslo, Norway
Knut Røed: Ragnar Frisch Centre for Economic Research

Abstract: This paper presents a model of informal care to parents. We assume that the child participates in the labour market and gains in utility from consumption and leisure. In addition it has altruistic motivation to give informal care to its elderly parent. We show how the labour income, labour supply and informal caregiving are affected by exogenous factors such as the education level, wage rate, other supply of care, travel distance and inheritance.

Keywords: informal care for elderly; labour market; elderly parent

JEL-codes: J22

32 pages, June 2, 2009

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