Labour and income effects of caregiving across Europe Comments on Labour and income effects of caregiving across Europe by David Casado-Marin Pilar Garcia-Gomez Angel Lopez-Nicolas

This paper Effects of exposure to caregiving (at home or elsewhere) on women participation, employment, income and receipt of social transfers Exploiting longitudinal features of ECHP Using non-parametric estimators (propensity score matching)

Two “counterfactuals” Women working at t = 1 treatment: caregiving at t = 2,3 control: working also at t = 2,3 Outcome at t = 3 Women not working at t = 1 control: not working also at t = 2,3

Main findings No effects on participation/employment of women who were initially working Negative effects on participation/employment of women who were not working initially Caregiving also involves decline in earnings partly compensated by social transfers

It is a relevant issue What is happening to zone C with ageing?

Most countries subsidise caregiving either formal or informal Most countries subsidise caregiving either formal or informal. Variety of approaches in this respect which does not correspond to taxonomy of welfare states in the paper

4 comments Data issues Quality of the matching Endogeneity Outcomes

1. Data issues EU-SILC provides better basis to assess nature of social transfers Longitudinal features to be still exploited Much more detail than ECHP on income sources Larger country samples. Possible to carry out within country estimations

2. Quality of matching Need to display estimated ps. Here example with women caregivers and non-caregivers In 2001 Balancing property is rejected Here. Please provide test Treatment group: Y to “Do your present daily activities include, without pay, looking after children or other persons who need special help because of old age, illness or disability ?” . Matching over age groups, education, household size, income, employment status

3. Endogeneity Decision as to whether or not to become caregiver affected by LM status, income, transfers, etc. Potential instruments Presence of disabled family members? Structure of the subsidies (support to formal vs. informal caregiving) Legislation on hours of work (part-time, role of collective bargaining, etc.)

4. Outcomes Is receipt of social transfers an outcome? Or rather a treatment? What is the take-up rate of the various transfers to caregivers?

Overall Nice paper on relevant issue. Interesting results. Try to find data for within country analysis as institutions are much different from country to country. Provide more diagnostic tests Non parametric estimates do not solve endogeneity