Caught between two stools? Informal care provision and employment among welfare recipients in Germany

Katrin Hohmeyer,Eva Kopf

doi:10.1017/s0144686x18000806

Katrin Hohmeyer, Eva Kopf

Open Access

https://doi.org/10.1017/s0144686x18000806

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Abstract

AbstractIn many countries, population ageing is challenging the viability of the welfare state and generating higher demands for long-term care. At the same time, increasing participation in the labour force is essential to ensuring the sustainability of the welfare state. To address the latter issue, affected countries have adopted measures to increase employment; e.g. welfare recipients in Germany are required to be available for any type of legal work. However, 7 per cent of welfare benefit recipients in Germany provide long-term care for relatives or friends, and this care-giving may interfere with their job search efforts and decrease their employment opportunities. Our paper provides evidence of the relationship between the care responsibilities and employment chances of welfare recipients in Germany. Our analyses are based on survey data obtained from the panel study ‘Labour Market and Social Security’ and on panel regression methods. The results reveal a negative relationship between intensive care-giving (ten or more hours per week) and employment for male and female welfare recipients. However, employment prospects recover when care duties end and are subsequently no longer lower for carers than for non-carers.

Highlights

Demographic changes in many developed countries have resulted in ageing societies, leading to higher demands for long-term care because the need for care increases with age
This paper studies the relationship between welfare recipients’ informal care-giving and their employment chances in Germany using survey data from the panel study ‘Labour Market and Social Security’ (PASS) and panel methods
Our results reveal that providing care for ten or more hours per week is associated with lower employment prospects for male and female welfare recipients

Summary

Introduction

Demographic changes in many developed countries have resulted in ageing societies, leading to higher demands for long-term care because the need for care increases with age. Our study aims to fill this gap by providing empirical evidence on the relationship between informal care-giving and employment of male and female welfare recipients in Germany. Our results indicate that providing care is negatively associated with the employment prospects of welfare recipients.

Results

Conclusion