Caregiving decisions are influenced by the availability and affordability of different types of care. Economic recessions such as the recent Great Recession stand out as experiences from which to learn about the effects of economic incentives on caregiving decisions. This article examines the influence of the economic downturn on caregiving decisions in European countries and specifically on the implementation of a widespread long-term care (LTC) reform in Spain. We find that the recession led to increased availability of informal caregivers but at the same time to reduced affordability of home and community care services. The Spanish experience reveals that the Great Recession encompassed an expansion in informal care explained by the increased uptake of caregiving allowances, which subsequently gave rise to a reform in 2012 that reduced the public subsidisation of old age care.

The rejection of immigration is explained by objective economic elements such as the financial crisis, the economic vulnerability of households and workers’ exposure to labor market competition.