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Duke Economics Working Paper #95-46
The Supply of Children's Time to
Disabled Elderly Parents
Frank A. Sloan,
Gabriel Picone,
and
Thomas J. Hoerger
Abstract
This study develops and tests a model of supply of children's
time to disabled elderly parents, using data from the National
Long-Term Care Survey. The model, which assumes strategic behavior
among relatives, offers predictions about effects of changes
in the price of paid personal care, parent's wealth, kids' wage
rates, public in-kind subsidies of personal care, and parent's
relative bargaining power on care provided by children. Although
several statistically significant relationships are obtained,
the evidence does not generally indicate that children's provision
of care to parents is guided by a strategic bequest motive.
Published in Economic Inquiry, Vol. 35, No. 2, April 1997, pp.
295-308.