Abstract
In this paper, we examine how non-formal caregiving affects one’s ability to work. We compare care regimes to see if contextual differences in labour market transitions relate to non-formal caregiving patterns among mid-life adults (50–64 years). Using the Survey of Health Ageing and Retirement in Europe (SHARE) from 2004–2017, we assess whether non-formal caregiving reduces one’s ability to maintain the same working hours. Specifically, we estimate probabilities of reducing working hours, exiting the labour market, and retiring as possible labour market changes compared to continuing to work. We also split analyses by gender, income, wealth, and compare care regimes to ascertain how the labour force participation is affected when persons become carers during the observed panel period. Overall results show that retiring is the most likely transition among all caregiving categories. More specifically, women and low-income and low-wealth co-resident caregivers in so-called medium defamilialism/supported familialsm care regime countries are more likely to reduce working hours, suggesting an income effect. Regarding labour market exit, no significant overall effect was found, although exit was less likely among men in family-by-default (FbD) regime countries when care took place outside their own household. Similar results were observed among middle-income households in FbD regimes, suggesting a possible substitution effect. To conclude, our findings indicate that non-formal caregiving significantly influences labour market transitions, with notable differences across gender, income levels, and care regimes. These insights highlight the need for policies that support caregivers in maintaining their employment, especially in contexts where familial caregiving is prevalent.