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The Living Arrangement Dynamics of Sick, Elderly Individuals

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  • Benoit Dostie
  • Pierre Thomas Léger

Abstract

We model the dynamics associated with living-arrangement decisions of sick elderly individuals. Using the Panel Study of Income Dynamics’ Parental Health Supplement, we construct the complete living-arrangement histories of elderly individuals in need of care. We use a simultaneous random-effects competing-risks model to analyze the impact of demographic characteristics, health, and wealth on the living-arrangement decisions of sick elderly individuals while taking into account state and duration dependence as well as unobserved heterogeneity. We find that the sick elderly individual’s current living arrangement as well as the time spent in that living arrangement serve as important predictors of future living-arrangements.

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File URL: http://jhr.uwpress.org/cgi/reprint/XL/4/989
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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Journal of Human Resources.

Volume (Year): 40 (2005)
Issue (Month): 4 ()
Pages: 989-1014

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Handle: RePEc:uwp:jhriss:v:40:y:2005:i:4:p:989-1014

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  1. Axel Borsch-Supan & Jagadeesh Gokhale & Laurence J. Kotlikoff & John N. Morris, 1992. "The Provision of Time to the Elderly by Their Children," NBER Chapters, in: Topics in the Economics of Aging, pages 109-134 National Bureau of Economic Research, Inc.
  2. Axel Borsch-Supan & Laurence J. Kotlikoff & John N. Morris, 1988. "The Dynamics of Living Arrangements of the Elderly," NBER Working Papers 2787, National Bureau of Economic Research, Inc.
  3. Mealli, Fabrizia & Pudney, Stephen, 1996. "Occupational Pensions and Job Mobility in Britain: Estimation of a Random-Effects Competing Risks Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(3), pages 293-320, May-June.
  4. Laurence J. Kotlikoff & John N. Morris, 1990. "Why Don’t the Elderly Live with Their Children? A New Look," NBER Chapters, in: Issues in the Economics of Aging, pages 149-172 National Bureau of Economic Research, Inc.
  5. Peter Dolton & Wilbert van der Klaauw, 1999. "The Turnover of Teachers: A Competing Risks Explanation," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 543-550, August.
  6. Hiedemann, Bridget & Stern, Steven, 1999. "Strategic play among family members when making long-term care decisions," Journal of Economic Behavior & Organization, Elsevier, vol. 40(1), pages 29-57, September.
  7. Alan M. Garber & Thomas E. MaCurdy, 1990. "Predicting Nursing Home Utilization among the High-Risk Elderly," NBER Chapters, in: Issues in the Economics of Aging, pages 173-204 National Bureau of Economic Research, Inc.
  8. Maxim Engers & Steven Stern, 2002. "Long-Term Care and Family Bargaining," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 73-114, February.
  9. Florian Heiss & Michael Hurd & Axel Borsch-Supan, 2003. "Healthy, Wealthy, and Knowing Where to Live: Predicted Trajectories of Health, Wealth and Living Arrangements Among the Oldest Old," NBER Working Papers 9897, National Bureau of Economic Research, Inc.
  10. Steven Stern, 1995. "Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 551-580.
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Cited by:
  1. Meliyanni Johar & Shiko Maruyama, 2010. "Intergenerational Cohabitation in Modern Indonesia: Filial Support and Dependence," Discussion Papers 2010-07, School of Economics, The University of New South Wales.
  2. Lippi Bruni Matteo & Ugolini Cristina, 2006. "Assistenza a domicilio e assistenza residenziale: politiche di intervento e analisi empirica," Rivista italiana degli economisti, Società editrice il Mulino, issue 2, pages 241-268.
  3. Michaud, Pierre-Carl & Heitmueller, Axel & Nazarov, Zafar, 2010. "A dynamic analysis of informal care and employment in England," Labour Economics, Elsevier, vol. 17(3), pages 455-465, June.
  4. Michelle Sovinsky & Steven Stern, 2013. "Dynamic modelling of long-term care decisions," ECON - Working Papers 113, Department of Economics - University of Zurich.
  5. Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2006. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," NBER Working Papers 12358, National Bureau of Economic Research, Inc.
  6. Shiko Maruyama & Meliyanni Johar, 2013. "Do Siblings Free-Ride in "Being There" for Parents?," Discussion Papers 2013-06, School of Economics, The University of New South Wales.
  7. M. Lippi Bruni & C. Ugolini, 2013. "Delegating home care for the elderly to external caregivers? An empirical study on Italian data," Working Papers wp905, Dipartimento Scienze Economiche, Universita' di Bologna.
  8. Meliyanni Johar & Shiko Maruyama, 2012. "Externality and Strategic Interaction in the Location Choice of Siblings under Altruism toward Parents," Discussion Papers 2012-15, School of Economics, The University of New South Wales.

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