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On the Consumption Insurance Effects of Long-term Care Insurance In Japan: Evidence from Micro Household Data

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  • Yasushi Iwamoto

    (Faculty of Economics, University of Tokyo)

  • Miki Kohara

    (Osaka School of International Public Policy, Osaka University)

  • Makoto Saito

    (Faculty of Economics, Hitotsubashi University)

Abstract

Using micro-level household data in the 2001 Comprehensive Survey of the Living Conditions of the People on Health and Welfare as compiled by the Japanese Ministry of Health, Labor and Welfare, this paper examines how having a household member in need of long-term nursing care can result in welfare losses measured in terms of consumption. In doing so, the study evaluates the role of the public long-term care insurance scheme implemented in Japan in April 2000. The results indicate that when households included a disabled family member, household consumption net of long-term care costs did not decrease as much as before the introduction of long-term care insurance. When compared with the surveys conducted in 1995 and 1998, the adverse effects on consumption net of long-term care costs have became much weaker. These findings suggest that the introduction of social insurance in 2000 helped to reduce the welfare loss associated with having a disabled family member.

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Bibliographic Info

Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number CIRJE-F-443.

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Length: 30pages
Date of creation: Oct 2006
Date of revision:
Handle: RePEc:tky:fseres:2006cf443

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  1. Paul Gertler & David I. Levine & Enrico Moretti, 2009. "Do microfinance programs help families insure consumption against illness?," Health Economics, John Wiley & Sons, Ltd., vol. 18(3), pages 257-273.
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  15. Pauly, Mark V, 1990. "The Rational Nonpurchase of Long-term-Care Insurance," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 153-68, February.
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