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Relative Income and Attitudes towards Long-Term Care Financing


Author Info

  • Joan Costa-Font

    (European Institute & LSE Health, London School of Economics, Cowdray House, Houghton Street, London WC2A 2AE, U.K.)

  • Anna Garcia-Gonzalez

    (CAEPS, University of Barcelona, Diagonal 690 Catalonia, Barcelona 08034, Spain.)

  • Montserrat Font-Vilalta

    (Universitat de Barcelona, Barcelona, Catalonia, Spain.)


Understanding economic motivations underlying attitudes towards long-term care (LTC) financing alternatives is important for both public and private insurance design. This paper empirically explores for the first time, using survey data, the empirical validity of individual absolute and relative income (affluence) as explaining attitudes towards the financing of LTC in Spain in 2002, after controlling for professional, institutional and personal characteristics. We find that more affluent individuals prove to be less likely to support state responsibility for LTC after controlling for other institutional determinants and are less enthusiastic about social insurance. While attitudes towards state responsibility are negatively associated with relative income, attitudes towards social insurance and other funding alternatives are found to be driven by absolute income. Finally, evidence suggests that income-related attitudes appear to concentrate in the age group close to retirement who arguably have already saved for old age needs. The Geneva Papers (2008) 33, 673–693. doi:10.1057/gpp.2008.32

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal The Geneva Papers on Risk and Insurance Issues and Practice.

Volume (Year): 33 (2008)
Issue (Month): 4 (October)
Pages: 673-693

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Handle: RePEc:pal:gpprii:v:33:y:2008:i:4:p:673-693

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Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK

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Cited by:
  1. Hayo, Bernd & Ono, Hiroyuki, 2011. "Livelihood and care of the elderly: Determinants of public attitudes in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 25(1), pages 76-98, March.
  2. Oliver Schnusenberg & Chung-Ping Loh & Katrin Nihalani, 2013. "The Role of Financial Wellbeing, Sociopolitical Attitude, Self-Interest, and Lifestyle in One’s Attitude Toward Social Health Insurance," Applied Health Economics and Health Policy, Springer, vol. 11(4), pages 369-381, August.


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