Bettio, Francesca () (Dipartimento di Economia Politica, UniversitaÃÂÃÂÃÂÃÂÃÂÃÂÃÂÃÂ di Siena) Mazzotta, Fernanda (CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy) Solinas, Giovanni (Dipartimento di Economia Politica, UniversitaÃÂÃÂÃÂÃÂ di Modena e Reggio Emilia)
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An important issue in the design of sustainable Long Term Care policies is the relative social cost of community or home based care versus institutional care. Here we undertake this cost comparison making use of the findings from the GALCA surveys on Long Term Care in Denmark, Ireland and Italy but confining attention to Italy. The survey for Italy was conducted in the municipality of Modena that may be considered broadly representative of Long Term Care conditions in the North of the country. It offers detailed descriptions of the carers and the cared for ranging from demographic and epidemiological characteristics to labour market position. The survey also allows to accurately compile all the ÃÂâÃÂÃÂÃÂÃÂinputsÃÂâÃÂÃÂÃÂàthat go into home care, from ÃÂâÃÂÃÂÃÂÃÂunpaidÃÂâÃÂÃÂÃÂàfamily labour and paid labour of immigrant minders to public and private services. Based on this information, we calculate the overall, per elderly social cost of home based care and find that home based care is more cost effective than institutional care even if the opportunity cost of ÃÂâÃÂÃÂÃÂÃÂunpaidÃÂâÃÂÃÂÃÂàfamily carers is valued and included in the calculation. We discuss the reasons for cost effectiveness and identify some of the risk factors that threaten the long term sustainability of current home care arrangements in Italy.
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Paper provided by CELPE (Centre of Labour Economics and Economic Policy), University of Salerno, Italy in its series CELPE Discussion Papers with number
103.
Find related papers by JEL classification: H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health 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 J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply