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Long-term care insurance and reemployment among middle-aged and elderly retirees: Evidence from China

Author

Listed:
  • Cheng, Qian
  • Guo, Junru
  • Li, Yue
  • Chen, Yongli
  • Ni, Xin

Abstract

As population aging accelerates, sustaining economic and social development requires social security reforms that enhance older adults' participation and unlock their labor potential. Using China's Long-Term Care Insurance (LTCI) pilot as a quasi-natural experiment, this study empirically examines LTCI's effect on the reemployment of middle-aged and elderly retirees. Results show that LTCI significantly boosts reemployment, increasing the likelihood of returning to work, raising rates of contract-based employment, and reducing reliance on self-employment. These effects vary across household, policy, and regional dimensions. Mechanism analysis indicates that LTCI promotes reemployment mainly by easing informal caregiving burdens and fostering the care service industry. The findings provide new evidence on the labor market implications of social care policies and highlight LTCI's role in advancing active aging and labor force engagement in aging societies.

Suggested Citation

  • Cheng, Qian & Guo, Junru & Li, Yue & Chen, Yongli & Ni, Xin, 2026. "Long-term care insurance and reemployment among middle-aged and elderly retirees: Evidence from China," Economic Modelling, Elsevier, vol. 155(C).
    • Handle: RePEc:eee:ecmode:v:155:y:2026:i:c:s026499932500392x
    DOI: 10.1016/j.econmod.2025.107397
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    Keywords

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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