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The Dynamics of Living Arrangements of the Elderly

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  • Axel Borsch-Supan
  • Laurence J. Kotlikoff
  • John N. Morris

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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Bibliographic Info

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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Publication status: published as The Economics of Care of the Elderly, 1992.
Handle: RePEc:nbr:nberwo:2787

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References

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  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 Chapters, in: The Economics of Aging, pages 151-176 National Bureau of Economic Research, Inc.
  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.
  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.
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Citations

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Cited by:
  1. Steven Stern & Bridget Hiedemann, 1999. "Strategic Play Among Family Members When Making Long-Term Care Decisions," Virginia Economics Online Papers 321, University of Virginia, Department of Economics.
  2. 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.
  3. 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.
  4. 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.
  5. Benoit Dostie & Pierre Thomas Léger, 2004. "The Living Arrangement Dynamics of Sick, Elderly Individuals," CIRANO Working Papers 2004s-03, CIRANO.
  6. 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.
  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.
  8. VanderHart, Peter G., 1998. "The Housing Decisions of Older Households: A Dynamic Analysis," Journal of Housing Economics, Elsevier, vol. 7(1), pages 21-48, March.
  9. 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.
  10. 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.

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