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Valuing Informal Care Experience: Does Choice of Measure Matter?

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Abstract

Well-being equations are often estimated to generate monetary values for non-marketed activities. In such studies, utility is often approximated by either life satisfaction or General Health Questionnaire scores. We estimate and compare monetary valuations of informal care for the first time in the UK employing both measures, using longitudinal data on well-being and informal care provision. The choice of well-being measure has some effect on the estimated parameters and resulting monetary valuations, but any differences are not statistically significant. Further research is needed to confirm the comparability of these measures if researchers are to continue to use them interchangeably.

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Notes

  1. A number of studies have reported a positive effect of activities like informal care-giving (such as volunteering and social activities) on health and happiness (Borgonovi 2008; Glass et al. 1999; de Mendes et al. 2003; Musick et al. 1999; Oman et al. 1999).

  2. Stated preferences refer to methods that are mostly presenting individual with scenarios or situations and ask for their preferences or opinions.

  3. Hypothetical bias refers to the difference between the stated intentions and actual behaviour of subjects.

  4. Although outside the scope of this paper, one could argue that even market data might not be able to reveal individuals’ true preferences, as very often behaviour is influenced by a wide variety of social, psychological and practical constraints/cues (Ariely 2008; Thaler and Sunstein 2008).

  5. Exact wording: Is there anyone living with you who is sick, handicapped or elderly whom you look after or give special help to (for example, a sick or handicapped (or elderly) relative/husband/wife/friend, etc.)?

  6. Individuals who indicate they do not provide care but state number of hours of care provided and individual who state number of hours of care provided but do not indicate they provide care are dropped from the analysis as potential data/measurement errors.

  7. The model is estimated using both LS and GHQ * scores as dependent variables.

  8. The larger magnitudes for the GHQ model are partly explained by the different scaling between the two outcomes (i.e. LS is a seven-point scale, while GHQ is a twelve-point one.

  9. Van den Berg et al. (2006) for the Netherlands estimated values ranging from €10.64 to €17.34 and €13.51 to €20.24. Others reported values of £10.3 (Schneider et al. 2003) and £11 for the U.K. (McCrone et al. 2003). Using contingent valuation others (de Meijer et al. 2010; van den Berg et al. 2005) have estimated values of around €9.52 and €9.13.

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Acknowledgments

We are grateful to an anonymous reviewer for helpful comments. We are also grateful to Hugh Gravelle, Aki Tsuchiya and other contributors to the 2009 Health Economists’ Study Group meeting in Sheffield for helpful suggestions on an earlier draft of this paper. The majority of the work was undertaken while one of the authors was funded by an MRC studentship. The Health Economics Research Unit is funded by the Chief Scientist Office of the Scottish Government Health Directorates (SGHD). The views expressed here are those of the authors and not necessarily those of the SGHD. Data from the British Household Panel Survey were supplied by the ESRC Data Archive. The usual disclaimer applies.

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Authors and Affiliations

  1. Health Economics Group, Faculty of Health, University of East Anglia, Norwich, NR4 7TJ, UK

    Emmanouil Mentzakis

  2. Health Economics Research Unit, University of Aberdeen, Polwarth Building, Foresterhill, Aberdeen, AB25 2ZD, UK

    Paul McNamee & Mandy Ryan

  3. Health Economics, School of Community Based Medicine, University of Manchester, Jean McFarlane Building, Oxford Road, Manchester, M13 9PL, UK

    Matthew Sutton

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  1. Emmanouil Mentzakis
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Correspondence to Emmanouil Mentzakis.

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Mentzakis, E., McNamee, P., Ryan, M. et al. Valuing Informal Care Experience: Does Choice of Measure Matter?. Soc Indic Res 108, 169–184 (2012). https://doi.org/10.1007/s11205-011-9873-y

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