Homeownership and Demand for Long-Term Care
AbstractElderly home-owners get institutionalized less often than renters do. We hypothesize that housing tenure itself explains this behavior. Using longitudinal data from a Dutch community sample (N= 2,372) collected between 1992 and 2005, we find a negative effect of housing tenure on the probability of moving to a nursing home between two subsequent waves. This effect remains significant after controlling for health, socio-economic status and the presence of a partner and or children. We could not reduce this finding to a variety of explanations directly related to housing tenure. There was no substantial effect of higher payments for long-term care for wealthy people before 1997. Neither did we find evidence that home owners have a strategic bequest motive, and use their house to attract informal care from their children. We do find that homeowners use informal care-at-home to postpone or avoid institutionalization. Homeowners do not appear to live in houses more suitable to the needs of old age than renters, they do not have better social networks from which they can recruit informal caregivers. However, they express a greater satisfaction with their housing situation than renters, even if their health deteriorates. We therefore interpret our findings as the result of a strong desire among homeowners to stay where they are -in their own property- and better possibilities they have -as owners- to realize this desire.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-114/3.
Date of creation: 12 Nov 2010
Date of revision: 04 Jan 2011
Contact details of provider:
Web page: http://www.tinbergen.nl
home equity; health care; ageing; housing tenure; institutionalization;
Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James Banks & Richard Blundell & Zoë Oldfield & James P. Smith, 2010.
"Housing Price Volatility and Downsizing in Later Life,"
in: Research Findings in the Economics of Aging, pages 337-379
National Bureau of Economic Research, Inc.
- James Banks & Richard Blundell & Zoë Oldfield & James P. Smith, 2007. "Housing Price Volatility and Downsizing in Later Life," NBER Working Papers 13496, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.