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Long-term care insurance policy, labor force employment, and regional poverty reduction

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  • Guo, Yuhui
  • Cai, Yuyun
  • He, Yiting

Abstract

This study employs panel data from 31 regions over the period 2009 to 2023 and adopts a quasi-natural experiment approach to examine how Long-Term Care Insurance (LTCI) contributes to regional poverty reduction, with a focus on the role of labor force employment. Baseline regression results confirm a significant poverty-reducing effect of LTCI. Further analysis reveals that this effect is heterogeneous across regions with varying levels of social security, being more pronounced in areas with higher social security coverage. Mechanism analysis identifies labor force employment as a key mediating channel through which LTCI influences poverty reduction. These findings provide macro-level evidence on the poverty reduction function of LTCI and offer insights for social security design in aging societies.

Suggested Citation

  • Guo, Yuhui & Cai, Yuyun & He, Yiting, 2026. "Long-term care insurance policy, labor force employment, and regional poverty reduction," Finance Research Letters, Elsevier, vol. 106(C).
    • Handle: RePEc:eee:finlet:v:106:y:2026:i:c:s1544612326007956
    DOI: 10.1016/j.frl.2026.110267
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