Why are older informal carers in better health? Solving a causality problem

Informal care is a widespread and important segment of long-term care, which is carried out independently of or in parallel with formal care, i.e. as a complement or replacement. Informal caregivers represent the backbone of long-term care, as has been witnessed by numerous international studies. In our article we focus on the relationship between the health status of the respondent and the decision to provide informal help to others as well as the intensity of the care. We show that this relationship is endogenous (reverse causality), using different measures of health and instrumental variables from Wave 5 and Wave 3 of SHARE Survey, and determine the causal effects of health on informal care, provided within and/or outside household. We also model the effect of various different covariates on informal caregiving. In conclusion we provide reflections on the research and discuss the policy relevance of the study