On the basis of the definition of the two problems described above, henceforth referred to as the simultaneity problem and the unobserved individual heterogeneity problem, previous studies examining the relationship between informal care and labour force participation can be classified according to whether they deal with both problems, only one of them, or neither.
Demographic and epidemiological shifts combined with international migration affect family structures, health and long-term care provision, labour force participation, retirement and financial security [ 25].
Crespo (2007) uses data from the first available wave (2004) of the SHARE to calculate the effects of informal care on female labour force participation in two triplets of countries in southern Europe Spain, Italy and Greecee) and northern Europe Sweden, Denmark and The Netherlandss), by estimating a bivariate probit model that controls for the endogeneity of the caregiving decision.
The important role of human capital in every economy shows that health care expenditure assures good quality labour force which is translated by increase in economic output thus increase in economic growth.
With an inadequate labour force, health care delivery is compromised and poor health indicators impact progress towards the Millennium Development Goals in South Africa.
The higher estimates can be partly explained by the working status of caregivers with incomplete data, as they were often full-time workers and accordingly could not provide as many informal care hours as caregivers outside the labour force.
Recent societal changes, however, such as women entering the labour force, have made caring for elderly relatives difficult.
Relying heavily on government funds, the urban health care system was established to cater for the health care needs of the urban elites and the labour force vital to the urgently needed industrial expansion.
Heitmueller (2007) uses instrumental variables to estimate, on the basis of the 2002 wave of the British Household Panel Survey (BHPS), the effect on labour force participation of providing care both inside and outside the household.
