In this paper, we use a 1998 reform in the federal funding of local home-based care for the elderly in Norway to examine the effects of formal care expansion on the labor supply decisions and mobility of middle-aged children. Our main finding is a consistent and significant negative impact of...

Changes in the nature of work and the family, the growing elderly population, and other developments over the past fifty years have rendered existing welfare policies largely out-of-step with economic and social conditions. While welfare state reform clearly raises important questions about...