How Politico-Economic Systems Shape Individuals' Value of Elderly Care: Evidence From the German Reunification.

Abstract

Perceptions of how societies should care for the elderly people can differ among countries. This study examines to what extent individuals' value of informal care is shaped by the politico-economic system in which they grew up and if this value adjusts once an individual lives in a different politico-economic system. We use data from the German Family Panel and take advantage of the unique setting of the German separation and reunification. Probit models are used to examine the effect of being born in East Germany on individuals' value of informal care relative to employment at different birth cohorts and survey waves (N = 14,093). Average marginal effects are calculated. Twenty years after reunification, East Germans who spent their adolescence under communism exhibit a higher value of informal care relative to employment than West Germans who grew up in a western social market economy. Differences in values between East and West Germans do not significantly converge over time. Individuals' value of informal care is deeply shaped by the politico-economic system in which they grew up. If immigration policies are introduced to increase the care for elderly people, differences in individuals' cultural perceptions of elderly care should be considered as these will not suddenly adjust.