Abstract
Using the China Health and Retirement Longitudinal Study, this study is the first to provide a comprehensive picture of the impact of caregiving on labour market outcomes in China for those aged 45+, specifically, labour force participation, wages, and working hours, with particular emphasis on caregiving intensity. A Heckman (two-stage) sample selection model was used to address potential selection bias in the observed wages and hours worked equations. An Instrumental Variable Generalized Method of Moments model was used to control the endogeneity of unpaid caregiving. Robust findings suggest that family caregivers in China combine employment and caring responsibilities, even when caregiving commitments increase. Yet providing unpaid family caregiving is associated with significant costs in terms of wage penalty and reduction in working hours, which are much larger relative to the findings in industrial countries. There is an extra negative effect when caregiving intensity is considered.
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