Hohmeyer, Katrin; Kopf, Eva
Institute for Employment Research, Germany
Due to the demographic development, the demand for long-term care is increasing in the near future in many developed countries. Furthermore in response to these demographic changes, the OECD advised member countries to take measures to increase employment to ensure the sustainability of the welfare state. Since the welfare reforms in Germany, welfare recipients were supposed to be ready to work and help themselves to decrease or end the neediness of their household. However, almost 6% of male and more than 8% of female members of these households who receive welfare benefits are engaged in long-term care of relatives or friends in need of assistance. Their care tasks may interfere with their job search. Our paper studies the relationship between care tasks of welfare recipients and their labour market performance. The direction of this relationship is not clear: on the one hand, taking care of relatives can worsen labour market opportunities. On the other hand, taking care of relatives can be the result of bad labour market opportunities (see Heitmüller, 2007; Meng, 2013). To shed light on this relationship, we study the labour market performance of male and female welfare recipients taking care of relatives. Our analyses are based on survey data from the Panel Study Labour Market and Social Security and on panel methods.