Informal and formal care among single-living elderly in Europe

Area of Science:

• Gerontology
• Health Economics
• Sociology

Background:

• Informal care by family is a significant component of elder care.
• Understanding the interplay between informal and formal care is essential for healthcare policy.
• Previous research has not fully explored the substitutability or complementarity of care across diverse European regions.

Purpose of the Study:

• To investigate whether informal care (by children/grandchildren) and formal care substitute or complement each other.
• To determine if this relationship varies across different European regions.
• To analyze the endogeneity of informal care in the context of formal care utilization.

Main Methods:

• Cross-sectional analysis using the Survey of Health, Ageing, and Retirement in Europe (SHARE) database.
• Application of instrumental variable methods to address endogeneity.
• Comparative analysis of care substitution/complementarity across European regions.

Main Results:

• Informal home care and formal home care are substitutes.
• Informal care is a complement to formal medical services like doctor and hospital visits.
• Significant north-south gradient observed in the relationship between informal and formal care across Europe.

Conclusions:

• Informal and formal care exhibit distinct substitution and complementarity patterns depending on the type of service (home care vs. medical visits).
• Regional disparities in Europe influence the dynamics of informal and formal care integration.
• Endogeneity of informal care must be considered for accurate policy-making in elder care.