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We analyze the decision making process of informal care provision by adult children to their parents. First, we develop a structural model to explain the amount of time that children without siblings spend on providing care, taking into account opportunity costs in terms of time and money. The model is estimated using two datasets from 12 European countries. In the presence of siblings, their choices also play a role in the caregiving decision. In the second part of the paper, we analyze these strategic interactions between siblings. A key element in this analysis is the distinction between cooperative and non-cooperative equilibria. Using the parameter estimates from the first part of the paper, we analyze the behavior of siblings and the potential welfare gains from cooperation. Our model suggests that the welfare gain of pushing noncooperative families into a cooperative equilibrium is equivalent to a subsidy of euros per family.
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EU-SILC-Bibliography
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The Effects of Cooperation: An Empirical Model of Siblings' Caregiving Interactions
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(5733), 2011
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European Union Statistics on Income and Living Conditions (EU-SILC)
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2011
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