Families Caring for an Aging America (2016) / Chapter Skim
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4 Economic Impact of Family Caregiving
4 Economic Impact of Family Caregiving
Pages 123-158
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From page 123... ...
, suggesting that there are important economic effects of taking on the caregiving role. This chapter examines the economic impact of unpaid family caregiving on family members and friends who care for older adults with functional or cognitive limitations, or a serious health condition, and identifies which caregivers are at greatest risk of severe financial consequences.
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asked caregivers about "financial strain" related to family caregiving. The survey found that 36 percent of the caregivers of adults older than the age of 50 reported moderate to high levels of financial strain.
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who helped significantly impaired persons -- those with both dementia and the need for help with at least two personal care activities -- reported having financial difficulties related to caregiving. In contrast, only 16.2 percent of the caregivers of indi 2 NSOC includes caregivers of older adults living in any type of residential care setting other than a nursing home.
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From page 126... ...
Little is known about the extent to which older adults and their family caregivers share the costs. One 2007 telephone survey asked caregivers about a wide range of spending including medical expenses, food and meals, household goods, travel costs, care recipient services (adult day services and home care)
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In one national survey, one in four (25 percent) family caregivers said it was very difficult to get affordable services in the older adult's community that would help with their care (NAC and AARP Public Policy Institute, 2015b)
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. Includes family caregivers of Medicare beneficiaries age 65 and older in the continental United States who resided in community or residential care settings (other than nursing homes)
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. Although many people expect to work longer -- primarily driven by financial considerations -- family caregiving responsibilities can sometimes get in the way of continued employment (Feinberg, 2014)
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based on HRS longitudinal data examined the long-term economic effects on workers who either reduced their hours at work or left the workplace before full retirement age. The analysis found that income-related losses sustained by family caregivers ages 50 and older who leave the workforce to care for a parent are $303,880, on average, in lost income and benefits over a caregiver's lifetime.5 More research is needed to fully understand the factors influencing the working caregiver's productivity and decision to exit and later return to the workplace and whether there are strategies that could mitigate adverse economic effects.
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. Some researchers estimate the societal benefit of family caregiving by calculating the replacement costs of the time spent by family caregivers on tasks that someone else could perform (and assuming an hourly wage that would be paid in lieu of caregiving)
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A flexible workplace can support employed caregivers with the time they need to handle emergencies and routine matters such as doctor's appointments. However, many family caregivers lack this flexibility and, for those who do not have the option of taking time off with pay, balancing work and family responsibilities can be nearly impossible.
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workers do not have access to paid family or medical leave (Glynn, 2015)
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c Includes parent of domestic partner or civil union partner. SOURCES: A Better Balance, 2015b; Connecticut Department of Labor, 2015; District of Columbia Office of Human Rights, 2011; Employment Law HQ, 2012; GovDocs, 2013; Governor's Commission on Women, 2001; National Conference of State Legislatures, 2016; New Jersey Department of Children and Families, 2007; New Jersey Department of the Treasury, 2016; Oregon Bureau of Labor and Industries, 2015; U.S.
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The number of paid vacation days is typically linked with workers' length of employment. Sick leave policies provide pay protection to sick or injured workers for a fixed number of paid sick days per year.
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As can be seen, there is a clear association between low wages and part-time status and no paid leave options. State and Local Efforts to Expand Access to Paid Leave for Family Caregivers State governments provided the leadership in the development of the paid family and medical leave policies in place today.
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. Impact of Paid Family Leave Programs on Caregivers of Older Adults Determining the direct impact of these programs on caregivers of older adults is difficult although the programs clearly offer some financial protection for those who can use them.
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parents, parents-in-law, self-employed individuals may grandparents, or siblings elect to participate New Jersey Family Leave Caregivers of seriously ill All private- and public-sector Insurance spouses, domestic partners, employersd (2009) parents, or grandparents New York Paid Family Caregivers of seriously ill All private employers;e selfLeave Program spouses, parents, parents- employed individuals may (2018)
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parents: 5.7% spouses: 10.4%b Administered by the state's newborn bonding: 79%c existing TDI program SOURCES: A Better Balance, 2016; Andrew Chang & Company, 2015; Arsen, 2016; Bartel et al., 2014; EDD, 2014a,b, 2015; National Partnership for Women and Families, 2015; New Jersey Department of Labor and Workforce Development, 2014; New Jersey Department of the Treasury, 2016; New York State Legislature, 2016; Rhode Island Department of Labor and Training, 2015; Stoler and Lewis, 2010; White et al., 2013.
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However, 2 of the 18 employers said the mandate led to lower profitability. Prospects for New State and Local Paid Family Leave Programs California, New Jersey, New York, and Rhode Island have been able to limit the cost of implementing paid family leave by using existing TDI state agencies.
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The policies, described in Table 4-4, have important implications for employed caregivers because they stipulate that workers have access to paid sick time when caring for certain ill family members. Earned sick day policies differ from paid family and medical leave policies.
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adult children are not employees illness or child or spouse's illness; includes eligible if caring for their an anti-discrimination provision prohibiting parents employers from asking workers about their familial responsibilities Californiab Caregivers of spouses, All employers Employer-paid 3 days per year for own illness or to care (2015) domestic partners, for an ill family member parents, parents-in-law, grandparents, or siblings Massachusettsc Caregivers of spouses, All private and public Employer-paid One hour of paid sick time for every 30 (2015)
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parents, grandparents, 40 hours per year when fully implemented) siblings, or parents-in-law a Connecticut General Statute 31-57r through 31-57w – Paid Sick Leave.
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. In September 2015, the President signed an Executive Order requiring federal contractors to offer their employees up to 7 days of paid sick leave annually, including paid leave allowing employees to care for ill family members (White House Office of the Press Secretary, 2015b)
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, also called caregiver discrimination, is employment discrimination against someone based on his or her family caregiving responsibilities and the assumption that workers with family obligations are not dependable or less productive than their peers (Calvert, 2015)
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The magnitude of the impact of FRD on family caregivers of older adults is not known; most reported cases relate to pregnancy and parenthood. The Center for WorkLife Law, which tracks litigated cases of FRD cases decided by courts, agencies, and arbitrators, has compiled a dataset of more than 4,400 cases dating from 1996 to 2015 (Calvert, 2016)
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The services are provided by staff experts in geriatric social work, family caregiving, and Alzheimer's disease. Although new employees are told about the service during orientation, most referrals come from supervisors or colleagues who have used the service.
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Although the relevant evidence is based primarily on caregivers' self-reports, research consistently shows that family caregivers of older adults with significant physical and cognitive impairments (and associated behavioral symptoms) BOX 4-3 Key Findings and Conclusions: Economic Impact of Family Caregiving Although the dynamics of the economic consequences of family caregiving are not well understood, surveys of caregivers suggest that the following factors are associated with financial harm: • he older adult's level of physical and cognitive impairment, including T behavioral symptoms; • o-residence with the older adult needing help; C • he older adult's, caregiver's, and family's existing financial resources; T • imited or no access to paid leave or a flexible workplace, if employed; L • imited or no availability of other family members to share responsibilities L and out-of-pocket costs; and • esiding a long distance from the older adult needing help.
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• our states have expanded their Temporary Disability Insurance programs F to administer paid family and medical leave programs. The programs offer partial wage replacement and are fully financed by worker-paid payroll taxes, however: • states where paid family leave is available, the programs are used In primarily by new parents, and the public is largely unaware of the benefits for caregivers of older adults.
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Low-wage and part-time workers are particularly vulnerable because they cannot afford to take unpaid leave and their employers are less likely to offer paid time off. A handful of states and local governments have taken action to assure access to some form of paid family or sick leave.
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2016. California governor signs paid family leave expansion into law.
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2015b. Department awards $1.55 m to study paid family, medical leave implementa tion.
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2015. Administering paid family and medical leave: Learning from interna tional and domestic examples.
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Based on data from Family Caregiving in the U.S.: Findings from a national survey. http://www.geckosystems.com/ downloads/empcosts.pdf (accessed December 4, 2015)
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2015. First impressions: Comparing state paid family leave programs in their first years.
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2015b. Executive Order -- establishing paid sick leave for federal contractors.
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2012. Protecting family caregivers from employment discrimination.
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