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Journal of Population Economics

, Volume 25, Issue 4, pp 1399–1422 | Cite as

Labor supply in the terminal stages of lone parents’ lives

  • Elisabeth Fevang
  • Snorre Kverndokk
  • Knut Røed
Original Paper

Abstract

Based on Norwegian register data, we show that having a lone parent in the terminal stage of life affects the offspring’s labor market activity. The employment propensity declines by around 0.5–1 percentage point among sons and 4 percentage points among daughters during the years prior to the parent’s death, ceteris paribus. After the parent’s demise, employment picks up again and earnings rise for both sons and daughters. Reliance on sickness insurance and other social security transfers increases significantly during the terminal stages of the parent’s life. For sons, the claimant rate remains at a higher level long after the parent’s demise.

Keywords

Elderly care Labor supply Inheritance 

JEL Classification

J14 J22 

Notes

Acknowledgements

This research is part of the Frisch Centre project 1135 “The public long-term care and its effect on labor market participation for elderly workers”, financed by the Norwegian Research Council through the Welfare Research Program. Data made available by Statistics Norway have been essential for the project. Thanks to Simen Gaure for programming assistance and to Heidi Gautun, Tor Iversen, Jos van Ommeren, two anonymous referees and, the Editor for valuable comments.

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Copyright information

© Springer-Verlag 2012

Authors and Affiliations

  • Elisabeth Fevang
    • 1
  • Snorre Kverndokk
    • 1
  • Knut Røed
    • 1
  1. 1.The Ragnar Frisch Centre for Economic ResearchOsloNorway

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