Labour Supply and Informal Care Responses to Health Shocks within Couples: Evidence from the UKHL

Shocks to health have been shown reduce labour supply for the individual affected. Less is known about household self-insurance through a partner's response shock. Previous studies presented inconclusive empirical evidence on existence of health-related `added worker effect'. We use UK longitudinal data investigate within households both and informal care responses an event acute shock their partner. Relying unanticipated timing shocks, we combine coarsened exact matching entropy balancing algorithms with parametric analysis exploit lagged outcomes remove bias from observed confounders time-invariant unobservables. find no ‘added A significant sizeable increase in spousal care, irrespective market position or financial status ability purchase formal provision, suggests substitution at expense time devoted leisure activities.