Abstract:
The demand and the supply of informal care are not limited to some specific people,
country, or continent. It is one of the rotini and ongoing socio-economic problem in the
world. This study analyzes the economics of informally supplied health care with special
emphasis on the labor market-related opportunity cost of informal caregiving for the
inpatient in Jimma university referral hospital. The study mainly used a primary data
which was collected from 238 sample respondents. Empirical analysis has been performed
by using the ordinary list square (OLS) and Tobit method of regression. According to the
OLS and Tobit model regression result, the variable paid job experience, educational level,
and employment status are statistically significant and positively related to the log of the
value of informal care via the wage difference. The number of external caregivers is also
positively related to the log value of informal caregiving. On the other hand, the age of
informal care recipient and the interaction term (female from urban area) are also
statistically significant and negatively related to the log of the value of informal care.
Based on the findings, this study recommends the intervention of the government through
the policy of awareness creation, financial support, work accommodation and
improvement of the accessibility and facility of the hospital.
