The Opportunity Costs of Elder Care

This study uses data from the 1987 National Survey of Families and Households to estimate the impact of caring for disabled elderly parents on the work hours of men and women. Instrumental variable techniques were used to correct for possible endogeneity bias. Work hours were consistently reduced by caregiving, although the effect was significant only for women providing care to parents residing outside the household. The magnitude of the caregiving effect was larger for women than for men and for coresidence than for non-coresidential care.