Publication: Do public caregiving subsidies and supports affect the provision of care and transfers?
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Date
2022-05-25
Authors
Costa-Font, Joan ; Jiménez-Martín, Sergi ; Vilaplana Prieto, Cristina
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Publisher
Elsevier
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DOI
https://doi.org/10.1016/j.jhealeco.2022.102639
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Description
© 2022 Elsevier B.V. All rights reserved. This document is the Published version of a Published Work that appeared in final form in Journal of Health Economics. To access the final edited and published work see https://doi.org/10.1016/j.jhealeco.2022.102639
Abstract
We study whether caregiving and intergenerational transfer decisions are sensitive to changes
in economic incentives following the inception of a new unconditional and universal system of
allowances and supports, after the introduction of the 2006 Promotion of Personal Autonomy and
Care for Dependent Persons Act (SAAD in Spanish), and the ensuing effects of its austerity cuts
after 2012. We find that whilst the introduction of a caregiving allowance (of a maximum value
of €530 in 2011) increased the supply of informal caregiving by 20-22 percentual points (pp),
the inception of a companion system of publicly subsidised homecare supports did not modify the
supply of care. Consistent with an exchange motive for intergenerational transfers, we estimate an
average 17 pp (8.2-8.7pp) increase (decrease) in downstream (upstream) transfers among those
receiving caregiving allowances. Our estimates resulting from the reduction in the allowances
and supports after the austerity cuts in 2012 are consistent with our main estimates, and suggest
stronguer effects among lower-income families.
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Citation
Journal of Health Economics 84 (2022) 102639
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