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The Dynamics of Living Arrangements of the Elderly

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Author Info
Axel Borsch-Supan
Laurence J. Kotlikoff
John N. Morris

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Abstract

This paper uses a new data set to study the choice of living arrangements of some 3000 Massachusetts elderly between 1982 and 1986. The data have a number of unique features; they are longitudinal and combine detailed information on health with information on economic status and family relations. This paper considers the influence on living arrangements of alternative measures of health (subjective versus functional abilities versus diagnosed condition), incomes and marital status of parents, and the number and sexes of children. It also examines the extent to which changes in health and the death of a spouse trigger changes in living arrangements and how rapidly such changes occur. The main findings of the paper are: Functional ability indices are very good predictors of living arrangements. Subjective health reports are poor predictors of living arrangements. The probability of institutionalization declines rapidly with the income of the elderly. In the cases of the older old daughters are much more likely than sons to share living quarters. Living arrangements are fairly stable. When changes in living arrangements occur they are often triggered by changes in health status or the death of a spouse. When deterioration in health status or the death of a spouse leads to a change in living arrangements, such changes typically occur within a year of the triggering event.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 2787.

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Date of creation: Dec 1988
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Handle: RePEc:nbr:nberwo:2787

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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.:
  1. Laurence J. Kotlikoff & John N. Morris, 1989. "How Much Care Do the Aged Receive from Their Children? A Bimodal Picture of Contact and Assistance," NBER Working Papers 2391, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Manski, Charles F & Lerman, Steven R, 1977. "The Estimation of Choice Probabilities from Choice Based Samples," Econometrica, Econometric Society, vol. 45(8), pages 1977-88, November. [Downloadable!] (restricted)
  3. Laurence J. Kotlikoff & John Morris, 1988. "Why Don't the Elderly Live With Their Children? A New Look," NBER Working Papers 2734, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Basavarajappa, K.G., 1998. "Living Arrangements and Residential Overcrowding: The Situation of Older Immigrants in Canada, 1991," Analytical Studies Branch Research Paper Series 1998115e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. P. Albuquerque, 2009. "The Elderly and the Extended Household in Portugal: An Age-Period-Cohort Analysis," Population Research and Policy Review, Springer, vol. 28(3), pages 271-289, June. [Downloadable!] (restricted)
  3. Benoit Dostie & Pierre Thomas Léger, 2003. "The Living Arrangement Dynamics of Sick, Elderly Individuals," Cahiers de recherche 03-07, HEC Montréal, Institut d'économie appliquée.
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  4. 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. [Downloadable!] (restricted)
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  5. Lisa Callegaro & Giacomo Pasini, 2007. "Social interaction effects in an inter-generational model of informal care giving," Working Papers 2007_10, University of Venice "Ca' Foscari", Department of Economics. [Downloadable!]
  6. Darius Lakdawalla & Tomas Philipson, 2002. "The Rise in Old-Age Longevity and the Market for Long-Term Care," American Economic Review, American Economic Association, vol. 92(1), pages 295-306, March. [Downloadable!]
    Other versions:
  7. Axel Borsch-Supan, 1989. "A Dynamic Analysis of Household Dissolution and Living Arrangement Transitions by Elderly Americans," NBER Working Papers 2808, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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