![]() However, when Austria loosened immigration restrictions to allow migrant workers into the caregiving industry, these effects were muted. The effect was larger for daughters and for those living in close proximity to their parents. Three years after a parental health decline, adult children in Austria experienced an average of 6 percent lower earnings compared to what they earned before the onset of the condition. Research by Julia Schmieder and coauthors Wolfgang Frimmel, Martin Hall, and Jörg Paetzold offers the perspective of adult children on the caregiving challenge. Immigration-induced increases in the supply of home-based formal care services mitigate the negative labor market consequences on adult children when the health of elderly parents declines. However, new immigration inflows have sharply declined in the past five years, and it is crucial to think about how this trend will impact the ability of seniors to age in place. Due to the rapid increase in immigration between 1980-2000, the rates of institutionalization were 10 percent lower in the year 2000 than if immigration rates remained at 1980 levels, according to the study’s authors. Research by Tara Watson, Kristin Butcher, and MIT PhD candidate Kelsey Moran finds institutionalization of the elderly has been on the decline, and immigration is one of several factors facilitating this decrease. The presence of a robust immigrant workforce increases the likelihood that Americans can age-in-place or stay in the community.
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