Abstract

Care of elderly family members affects the welfare of the elderly and caregivers and has macroeconomic implications. In Eastern Europe, aging populations combined with under-developed care policy increase family care burdens, but the impact of care on labour force participation is understudied in this context. Using two waves of the Generations and Gender survey, we estimate the impact of care demand on paid employment in Bulgaria. We find that living with an elderly or disabled parent has a negative impact on employment for women and that this impact cannot be explained by reverse causality or unobserved individual characteristics. More developed care policy would benefit caregivers and would be likely to generate broader fiscal benefits.