Informal Caregiving and Women's Work Choices: Lessons from the Netherlands

Abstract

This paper focuses on the effects of Dutch long-term care and labour market policies on women's labour market participation and informal caregiving decisions. Labour market participation and informal caregiving are estimated jointly through a multivariate dynamic binary probit on European Community Household Panel data. Under Dutch policy, informal care decisions appear to be independent of household non-labour income and no significant impediment seems to hinder the contemporaneous practice of work activities and care. However, past informal care provision still slightly reduces the probability of currently working and vice versa, leaving room for policy improvements to enhance labour market participation.