IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v97y2025ics1059056024008086.html
   My bibliography  Save this article

Elderly care burden and household investment behavior: The roles of family income, social security, and long-term care insurance

Author

Listed:
  • Wang, Zhen
  • Huang, Yaoxuan
  • Chen, Min
  • Li, Changle

Abstract

The rapid aging of China's population has intensified the burden of elderly care on families, with potential implications for household financial decision-making. While existing research has examined the effects of caregiving on household savings behavior, the impact of eldercare responsibilities on household investment strategies has received little attention. Using data from the China Family Panel Studies (CFPS), we find that elderly care burden significantly reduce households' participation in risky investments. This relationship is moderated by family income and social security coverage, with higher levels of both mitigating the negative effect. Furthermore, our heterogeneity analysis of Long-Term Care Insurance (LTCI) pilot programs—a key policy initiative launched in 2016 to address eldercare, which indicates that the negative effect of the elderly care burden on risk investment is more pronounced in LTCI pilot cities compared to non-pilot cities. These findings provide new insights into how demographic shifts and policy interventions influence household investment strategies, offering important implications for policymakers aiming to balance eldercare support with economic development objectives in aging societies.

Suggested Citation

  • Wang, Zhen & Huang, Yaoxuan & Chen, Min & Li, Changle, 2025. "Elderly care burden and household investment behavior: The roles of family income, social security, and long-term care insurance," International Review of Economics & Finance, Elsevier, vol. 97(C).
    • Handle: RePEc:eee:reveco:v:97:y:2025:i:c:s1059056024008086
    DOI: 10.1016/j.iref.2024.103816
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056024008086
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2024.103816?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:reveco:v:97:y:2025:i:c:s1059056024008086. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.