Presentation on theme: "The effect of elderly care-giving on female labour supply in Indonesia Elisabetta Magnani University of New South Wales, Australia Anu Rammohan University."— Presentation transcript:
The effect of elderly care-giving on female labour supply in Indonesia Elisabetta Magnani University of New South Wales, Australia Anu Rammohan University of Sydney, Australia 5th International Research Conference on Social Security "Social security and the labour market: A mismatch?"
Ageing and development without social security. What challenges? What problems? The United Nations has identified global ageing as one of the top socio-economic issues facing the world community in the 21st century In developing country environments, due to a lack of universal social safety nets, the household typically acts as an informal source of old-age security. Co-residence between older parents and at least one adult child is a central feature of the familial support system in Asia (see Bongaarts and Zimmer, 2001; DaVanzo and Chan 1994; Hermalin et al, 1996; Knodel, et al, 1999). This family-based support system has been actively encouraged by many Asian govts., with few attempts made towards setting up even less than universal social safety nets. This intra-household intergenerational effect of population ageing however, remains a less researched issue.
Two central questions: How does care-giving to the elderly affect the working decisions of co-residing adult members of the household? Does care-giving have gender differential effects on labour supply? Answering these questions is important as ageing in developing countries could involve high demands on womens time shared between (i) increasing LF participation due to pop. ageing; (ii) increasing care demands; (iii) traditional roles as mothers and carers of other family members.
Technical aspects of this analysis Why Indonesia; Indonesia is experiencing rapid demographic changes with falling fertility rates, rise in life expectancy and a shrinking labour force. Only 10% of Indonesians have some kind of pension (ILO, 2003) Data set: Indonesian Family Life Survey (IFLS) (2000), sample of more than 6,000 individuals; Estimate the probability of LF participation and number of hours for women and men; Main variables of interest: dummy variable for care-giving households (with 50+ members who are in poor health; Various measures of elderly health (important to check robustness).
Econometrics: How to measure the impact of Care-Giving on LF participation? The main problem is that the decision to provide care to family elderly is not randomly distributed in a sample of households. There are two problems related to this: ENDOGENEITY: It could be that a set of neglected variables explain the decision to give care, making care-giving endogenous; these factors may be correlated with the LS decision; SELECTION BIAS: It could be that the care- giving households are selected and the selection criteria are correlated with the LS decisions.
Any support to the hypothesis of endogeneity? N-C Co-residing households
Conclusive Remarks on Care and Work-Life Balance Our study provides evidence that the decision to provide care to the elderly is endogenous; older household with less young children and with more female and male members working are more likely to provide elderly with care. After correcting for this source of bias, there is robust evidence that care-giving reduces LF participation by women and working hours for men. Is there any additional effect? What about post-care-goving female health? What about childrens health? Work-in- progress Is this female LS response to work-life pressures compatible with governments desire to increase LF participation to balance off LF ageing?