IDEAS home Printed from https://ideas.repec.org/a/eee/joecag/v15y2020ics2212828x19300970.html
   My bibliography  Save this article

Economic development and long-term care provision by families, markets and the state

Author

Listed:
  • Yakita, Akira

Abstract

In earlier stages of economic development, women mainly serve as family elderly care providers. With economic development, progress by women in the work force has lowered care levels. If levels should fall below the minimum care level for elderly parents, then children might enter into insurance contracts and even demand provision of long-term elderly care by the state. Such a change in elderly care provision is consistent with predictions that have been presented in the literature. As a further examination of this topic, this paper presents the conjecture that, as wage rates rise further, children will provide sufficient elderly care to parents by purchasing market care services.

Suggested Citation

  • Yakita, Akira, 2020. "Economic development and long-term care provision by families, markets and the state," The Journal of the Economics of Ageing, Elsevier, vol. 15(C).
  • Handle: RePEc:eee:joecag:v:15:y:2020:i:c:s2212828x19300970
    DOI: 10.1016/j.jeoa.2019.100210
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2212828X19300970
    Download Restriction: no

    References listed on IDEAS

    as
    1. Chiara Canta & Pierre Pestieau & Emmanuel Thibault, 2016. "Long-term care and capital accumulation: the impact of the State, the market and the family," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(4), pages 755-785, April.
    2. M.L. Leroux & P. Pestieau, 2014. "Social Security and Family Support," Canadian Journal of Economics, Canadian Economics Association, vol. 47(1), pages 115-143, February.
    3. Canta, Chiara & Cremer, Helmuth, 2018. "Uncertain Altruism and Non-Linear Long-Term Care Policies," IZA Discussion Papers 11619, Institute of Labor Economics (IZA).
    4. Pestieau, Pierre & Ponthiere, Gregory, 2016. "Long-term care and births timing," Journal of Health Economics, Elsevier, vol. 50(C), pages 340-357.
    5. Cremer Helmuth & Gahvari Firouz & Pestieau Pierre, 2013. "Endogenous Altruism, Redistribution, and Long-Term Care," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 499-524, July.
    6. Helmuth Cremer & Kerstin Roeder, 2012. "Long-Term Care Policy, Myopia and Redistribution," CESifo Working Paper Series 3843, CESifo.
    7. IOANNIDES , Yannis & KAN , Kamhon, 1994. "The Nature of Two-Direction Intergenerational Transfers of Money and Time : An Empirical Analysis," LIDAM Discussion Papers CORE 1994033, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Donald Cox & Oded Stark, 2007. "On the Demand for Grandchildren: Tied Transfers and the Demonstration Effect," Chapters, in: Luigino Bruni & Pier Luigi Porta (ed.),Handbook on the Economics of Happiness, chapter 18, Edward Elgar Publishing.
    9. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages 151-182, July.
    10. David de la Croix & Matthias Doepke, 2003. "Inequality and Growth: Why Differential Fertility Matters," American Economic Review, American Economic Association, vol. 93(4), pages 1091-1113, September.
    11. Charles Yuji Horioka & Emin Gahramanov & Aziz Hayat & Xueli Tang, 2018. "Why Do Children Take Care Of Their Elderly Parents? Are The Japanese Any Different?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(1), pages 113-136, February.
    12. Liliana E. Pezzin & Barbara Steinberg Schone, 1999. "Intergenerational Household Formation, Female Labor Supply and Informal Caregiving: A Bargaining Approach," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 475-503.
    13. de la Croix,David & Michel,Philippe, 2002. "A Theory of Economic Growth," Cambridge Books, Cambridge University Press, number 9780521001151, December.
    14. Ponthiere Gregory, 2013. "Long-Term Care, Altruism and Socialization," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 429-471, October.
    15. Cremer, Helmuth & Roeder, Kerstin, 2013. "Long-term care policy, myopia and redistribution," Journal of Public Economics, Elsevier, vol. 108(C), pages 33-43.
    16. Cremer, Helmuth & Gahvari, Firouz & Pestieau, Pierre, 2017. "Uncertain altruism and the provision of long term care," Journal of Public Economics, Elsevier, vol. 151(C), pages 12-24.
    17. Yang-Ming Chang & Dennis L. Weisman, 2005. "Sibling Rivalry and Strategic Parental Transfers," Southern Economic Journal, Southern Economic Association, vol. 71(4), pages 821-836, April.
    18. Canta Chiara & Pestieau Pierre, 2013. "Long-Term Care Insurance and Family Norms," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(2), pages 401-428, April.
    19. Galor, Oded & Weil, David N, 1996. "The Gender Gap, Fertility, and Growth," American Economic Review, American Economic Association, vol. 86(3), pages 374-387, June.
    20. Frank A. Sloan & Jingshu Wang & Harold H. Zhang, 2002. "Upstream Intergenerational Transfers," Southern Economic Journal, Southern Economic Association, vol. 69(2), pages 363-380, October.
    21. Alessandro Cigno & Mizuki Komura & Annalisa Luporini, 2016. "Self-Enforcing Family Rules, Marriage and the (Non)Neutrality of Public Intervention," CESifo Working Paper Series 5948, CESifo.
    22. CREMER, Helmuth & PESTIEAU, Pierre & PONTHIERE, Grégory, 2012. "The economics of long-term care: a survey," LIDAM Discussion Papers CORE 2012030, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    23. Helmuth Cremer & Kerstin Roeder, 2017. "Long-term care policy with lazy rotten kids," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 19(3), pages 583-602, June.
    24. Rapoport, Hillel & Vidal, Jean-Pierre, 2007. "Economic growth and endogenous intergenerational altruism," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1231-1246, August.
    25. Akira Yakita, 2018. "Female labor supply, fertility rebounds, and economic development," Review of Development Economics, Wiley Blackwell, vol. 22(4), pages 1667-1681, November.
    26. Pierre Pestieau & Motohiro Sato, 2008. "Long‐Term Care: the State, the Market and the Family," Economica, London School of Economics and Political Science, vol. 75(299), pages 435-454, August.
    27. Yakita, Akira, 2018. "Parents’ strategic transfers and sibling competition in the presence of pay-as-you-go pensions," Economics Letters, Elsevier, vol. 170(C), pages 63-65.
    28. Kenneth Couch & Mary Daly & Douglas Wolf, 1999. "Time? money? both? the allocation of resources to older Parents," Demography, Springer;Population Association of America (PAA), vol. 36(2), pages 219-232, May.
    29. Julie Zissimopoulos, 2001. "Resource Transfers to the Elderly: Do Adult Children Substitute Financial Transfers for Time Transfers?," Working Papers 01-05, RAND Corporation.
    30. Janet Currie & Firouz Gahvari, 2008. "Transfers in Cash and In-Kind: Theory Meets the Data," Journal of Economic Literature, American Economic Association, vol. 46(2), pages 333-383, June.
    31. Alessandro Cigno & Mizuki Komura & Annalisa Luporini, 2017. "Self-enforcing family rules, marriage and the (non)neutrality of public intervention," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(3), pages 805-834, July.
    32. Yang-Ming Chang & Zijun Luo, 2015. "Endogenous division rules as a family constitution: strategic altruistic transfers and sibling competition," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(1), pages 173-194, January.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Altruistic children; Economic development; Informal elderly care; Long-term care policy; Market elderly care;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joecag:v:15:y:2020:i:c:s2212828x19300970. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Haili He). General contact details of provider: https://www.journals.elsevier.com/the-journal-of-the-economics-of-ageing .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.