TY  - RPRT
        AU  - Costa-Font, Joan
AU  - Jimenez-Martin, Sergi
AU  - Vilaplana-Prieto, Cristina
        TI  - Thinking of Incentivizing Care? The Effect of Demand Subsidies on Informal Caregiving and Intergenerational Transfers
        PY  - 2018/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11774
        UR  - https://www.iza.org/publications/dp11774
        AB  - We study the effect of demand-side subsidies to old age care recipients on both caregiving and intergenerational transfer decisions. We exploit two quasi-natural experiments referring to the inception of a universal and unconditional caregiving allowance in 2007 and its subsequent reduction in 2012. We find that the introduction of a caregiving allowance of a magnitude up to 530€ in 2011 increased the probability of informal caregiving by 32% and the intensity of care in 13.5 days/year. Consistently, we find that downstream (upstream) intergenerational transfers increased (decreased) in a magnitude of 29% (15%). The effects concentrate among middle and lower income households and were attenuated by the reduction of the subsidy.
        KW  - unconditional transfer
KW  - family transfers
KW  - exchange motivation
KW  - caregiving allowances
KW  - long-term care
KW  - difference-in-differences
KW  - intergenerational transfers
KW  - caregiving
KW  - demand-side cash subsidies
        ER  -