Informal Caregiving within the Household and Family

According to the World Health Organization, 16% of the world’s population experienced a disability in 2021. This is expected to rise against a background of global demographic aging and growing support needs, often provided by relatives. This chapter reviews evidence on informal care to a relative. First, it provides stylized facts on the characteristics of caregivers and how the use of informal care varies across countries. Second, it discusses the decision-making process of caregiving, with a focus on parental care and the role of siblings. Third, it surveys the evidence on the implications of providing care for informal caregivers on their labor market outcomes, their health and well-being, and their social and family life. Results are presented according to the nature of the care relationship. While the effect of caring for a parent on wages or the extensive margin of work is unclear, women’s working hours are negatively affected. Caregivers to a parent also experience negative effects on their physical health. Having a spouse in poor health has generally either a negative effect or no effect on the labor supply. While a spousal health shock leads to adverse effects on mental health, especially for women, physical health seems to be spared. It is also associated with an increased risk of marital dissatisfaction and potential subsequent separation. Caring for a child has adverse effects on the parents’ labor outcomes and on their mental health. Mothers appear to be more affected than fathers. Parents of a disabled child also have a lower probability of remaining together, while the effect on fertility is ambiguous. A child’s disability has long-term effects on their siblings too, affecting their educational outcomes, mental health, and future earnings.