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Is nursing home demand affected by the decline in age difference between spouses?

  • Darius N. Lakdawalla

    (RAND)

  • Robert Schoeni

    (University of Michigan Ann Arbor)

We investigate whether declines in the age difference between spouses has influenced widowhood and nursing home demand. We first use life-table methods to simulate the impact of the declining age gap on the risk of widowhood. We then use the Medicare Current Beneficiary Survey and the Census Public Use Microdata Samples to estimate the impact of widowhood, and other characteristics, on the probability of nursing home entrance. These help us estimate the impact of the declining age gap on nursing home use. We estimate that the decline in the difference in ages between spouses that took place between the birth cohorts of 1900 and 1955 may raise women's annual nursing home expenditures by about $1.4 billion, but lower men's expenditures by about $600 million.

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File URL: http://www.demographic-research.org/volumes/vol8/10/8-10.pdf
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Article provided by Max Planck Institute for Demographic Research, Rostock, Germany in its journal Demographic Research.

Volume (Year): 8 (2003)
Issue (Month): 10 (May)
Pages: 279-304

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Handle: RePEc:dem:demres:v:8:y:2003:i:10
Contact details of provider: Web page: http://www.demogr.mpg.de/

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  1. Alan M. Garber & Thomas E. MaCurdy, 1990. "Predicting Nursing Home Utilization among the High-Risk Elderly," NBER Chapters, in: Issues in the Economics of Aging, pages 173-204 National Bureau of Economic Research, Inc.
  2. Norton, Edward C, 1995. "Elderly Assets, Medicaid Policy, and Spend-Down in Nursing Homes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 41(3), pages 309-29, September.
  3. Liliana E. Pezzin & Peter Kemper & James Reschovsky, 1996. "Does Publicly Provided Home Care Substitute for Family Care? Experimental Evidence with Endogenous Living Arrangements," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 650-676.
  4. Darius Lakdawalla & Tomas Philipson, 1998. "The Rise in Old Age Longevity and the Market for Long-Term Care," NBER Working Papers 6547, National Bureau of Economic Research, Inc.
  5. Steven Stern, 1995. "Estimating Family Long-Term Care Decisions in the Presence of Endogenous Child Characteristics," Journal of Human Resources, University of Wisconsin Press, vol. 30(3), pages 551-580.
  6. Mark Bagnoli & Ted Bergstrom, . "Courtship as a Waiting Game," Papers _030, University of Michigan, Department of Economics.
  7. Ettner, Susan L, 1994. "The Effect of the Medicaid Home Care Benefit on Long-Term Care Choices of the Elderly," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 103-27, January.
  8. Lee Lillard & Constantijn Panis, 1996. "Marital status and mortality: The role of health," Demography, Springer, vol. 33(3), pages 313-327, August.
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