Eur J Health Econ. 2026 Jan 31. doi: 10.1007/s10198-025-01850-y. Online ahead of print.
ABSTRACT
While a substantial body of empirical research documents the negative wellbeing and labour force participation effects of transitioning into and maintaining informal care roles, studies of transitions out of caregiving are small in number and present conflicting results. We contend that these conflicting results reflect differences in sample selection and methodological approaches. As such, we implement a novel research design known as staggered difference-in-differences to account for heterogeneities in carers’ transition dates, caregiving intensity, and demographic and socio-economic characteristics to deliver robust evidence on their post-transition wellbeing and labour force participation outcomes. Our sample is drawn from Waves 5 to 18 of the Household, Income and Labour Dynamics in Australia Survey, Australia’s largest longitudinal household survey, and comprises 6,090 respondent-Wave-level observations from respondents who transitioned out of carer roles. We find that respondents who previously devoted at least 10 hours per week to care enjoy significantly better mental health, emotional wellbeing and social functioning than those with ongoing carer duties. These benefits are immediate and generally persist for years after transitioning out of carer roles. Labour market participation outcomes follow a similar pattern: both employment rates and hours worked rise sharply upon exit and remain elevated. Our results also underscore the importance of using care intensity measures that accurately reflect the burden of caregiving, specifically, time- rather than role-based metrics.
PMID:41619144 | DOI:10.1007/s10198-025-01850-y
