This paper analyses how spouses in older couples react to `shocks' or `surprises' in their partner's labour income using data from the British Household Panel Survey, 1991-2004. Wives' labour supply proves to be much more sensitive to shocks than husbands'. After a divorce or separation, wives...

An important demographic trend is the aging of the population. As a result, demand for health care services for the sick and elderly is likely to increase. Since care for the sick and elderly is often provided informally by family members, parental illness may have important implications for the...