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Nursing home aversion post-pandemic: Implications for savings and long-term care policy

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  • Achou, Bertrand
  • De Donder, Philippe
  • Glenzer, Franca
  • Lee, Minjoon
  • Leroux, Marie-Louise

Abstract

COVID-19 outbreaks at nursing homes during the recent pandemic have received ample media coverage and may have lasting negative impacts on individuals’ perception of nursing homes. We argue that this could have sizable and persistent implications for savings and long-term care policies. Our theoretical model predicts that higher nursing home aversion should induce higher savings and stronger support for policies subsidizing home care. Based on a survey of Canadians aged 50 to 69, we document that higher nursing home aversion is widespread: 72% of respondents are less inclined to enter a nursing home because of the pandemic. Consistent with our model, we find that these respondents are more likely to have higher intended savings for old age because of the pandemic. We also find that they are more likely to strongly support home care subsidies.

Suggested Citation

  • Achou, Bertrand & De Donder, Philippe & Glenzer, Franca & Lee, Minjoon & Leroux, Marie-Louise, 2022. "Nursing home aversion post-pandemic: Implications for savings and long-term care policy," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 1-21.
    • Handle: RePEc:eee:jeborg:v:201:y:2022:i:c:p:1-21
    DOI: 10.1016/j.jebo.2022.06.034
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    Cited by:

    1. Pierre-Carl Michaud & Pascal St-Amour, 2023. "Longevity, Health and Housing Risks Management in Retirement," Swiss Finance Institute Research Paper Series 23-18, Swiss Finance Institute.
    2. Han Hu & Zhao Zhang, 2022. "Long-Term Care Services and Insurance System in China: An Evolutionary Game Analysis," Sustainability, MDPI, vol. 15(1), pages 1-22, December.
    3. Nicholas-James Clavet & Réjean Hébert & Pierre-Carl Michaud & Julien Navaux, 2022. "The future of long-term care in Quebec: what are the cost savings from a realistic shift towards more home care?," CIRANO Working Papers 2022s-09, CIRANO.
    4. Hunter, P.V. & Ward, H.A. & Puurveen, G., 2023. "Trust as a key measure of quality and safety after the restriction of family contact in Canadian long-term care settings during the COVID-19 pandemic," Health Policy, Elsevier, vol. 128(C), pages 18-27.
    5. Di Novi, Cinzia & Martini, Gianmaria & Sturaro, Caterina, 2023. "The impact of informal and formal care disruption on older adults’ psychological distress during the COVID-19 pandemic in UK," Economics & Human Biology, Elsevier, vol. 49(C).

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    More about this item

    Keywords

    Pandemic risk; Nursing home; Long-term care; Savings; Public policy;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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