Partners
Brookings Institution’s Retirement Security Project
Overview
Economic Burden of Unpaid Caregiving
The need for long-term care is one of the largest financial risks facing individuals and families in retirement. In the United States, millions of people rely on unpaid care provided by spouses, adult children, relatives, and friends when health needs arise. According to the Bureau of Labor Statistics, approximately 37 million Americans provide unpaid eldercare each year—about 14% of the population. Most caregivers are women, and many are supporting a spouse or partner.
Despite the critical role unpaid caregivers play in the long-term care system, the economic value of their contributions remains difficult to measure. Estimates vary widely, from roughly $150 billion per year in forgone wages to more than $500 billion annually depending on the methodology used. This variation reflects the complexity of valuing time, opportunity costs, and non-market labor in caregiving.
Researchers at the Brookings Institution’s Retirement Security Project are undertaking a project to improve how the economic burden of unpaid caregiving is measured and understood. By producing more accurate and credible estimates, the project aims to inform policies that better support caregivers and strengthen long-term care systems.
Theory of Change
Reliable measurement of unpaid caregiving is essential for meaningful policy reform. Estimates that are too low may understate the urgency of long-term care challenges, while estimates that appear unrealistic risk being dismissed by policymakers. By producing credible and nuanced measures—including differences across caregiver populations—this project will help identify which policy solutions can most effectively reduce caregiver burden and improve economic security.
Project Status – Initial Phase
Project Period: January 1, 2026 – December 31, 2028
The project is currently in the early research and design phase, including development of the survey instruments and discrete choice experiment framework. Data collection is expected to begin following instrument finalization and pilot testing.
Key milestones include completion of data collection, analysis and reconciliation of valuation methods, and dissemination of findings through reports, academic publications, and policy briefs. Initial results are anticipated within the first year of the project, with full outputs and policy engagement activities occurring thereafter.
ICMM’s Role
ICMM supports the research and evaluation phases of this project, with an emphasis on equity, practical solutions, and policy relevance for LMI populations. The economic burden of unpaid caregiving often falls more heavily on LMI households, where fewer financial resources and limited access to paid care options can amplify financial strain, stress, and health challenges. By funding this work, ICMM aims to generate evidence that can inform practical strategies and policy solutions to reduce the financial, psychological, and physical burdens experienced by unpaid caregivers across the country.
Goals / Objectives
- Measure caregiver burden more precisely. Researchers will estimate caregivers’ willingness to pay (WTP) for reductions in the number of hours they provide care using a discrete choice experiment, a rigorous economic method for understanding preferences and tradeoffs.
- Reconcile existing estimates. The project will compare and decompose different valuation approaches to identify why estimates of unpaid caregiving vary so widely.
- Inform policy development. Findings will clarify how caregiving burden estimates should be incorporated into policy models and long-term care reform discussions.
- Disseminate results. The team will share findings with policymakers, researchers, and stakeholders to support evidence-based decision-making.
Methods
The study will use a discrete choice experiment to estimate caregivers’ willingness to pay for reductions in unpaid care hours, allowing researchers to quantify the economic burden of caregiving across different populations. These results will be compared with existing valuation approaches to reconcile methodological differences and improve the accuracy of unpaid caregiving estimates.
Expected Impact
- Primary Outcomes
- New Data Insights: Improved estimates of how caregivers value reductions in care hours, including how economic burden varies across demographic and socioeconomic groups.
- Policy Guidance: Evidence on which types of interventions are most likely to reduce caregiver burden based on caregiver characteristics and needs.
- Long-Term Impact
- Improved Policy Modeling: Results will inform how unpaid caregiving is incorporated into long-term care financing models and projections.
- Stronger Policy Development: Evidence will support reforms that improve financial stability and well-being for both caregivers and care recipients.
- Enhanced Economic Security: Ultimately, better measurement can contribute to policies that reduce financial strain and improve quality of life for millions of families.
