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Do non-profit operators provide higher quality of care? Evidence from micro-level data for Japan’s long-term care industry

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  • Noguchi, Haruko
  • Shimizutani, Satoshi

Abstract

Along with the introduction of the long-term care insurance scheme, the Japanese government in 2000 for the first time allowed for-profit operators to compete head-on with non-profit operators in the provision of at-home care services. This study examines quality differentials between the nonprofit and the for-profit sector in Japan's elderly care industry, concentrating on home helpers and staff nurses. Taking advantage of a unique and rich micro-level survey, the study finds that although nonprofit operators provide higher quality of care, as measured by simple averages of workers' characteristics, the advantage of nonprofits disappears once their higher wage is corrected for. This finding confirms that the seemingly higher quality of care provided by nonprofit operators is due to the nonprofit wage premium, resulting from their preferential status which provides non-distributional constraints and favorable tax treatment.
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Suggested Citation

  • Noguchi, Haruko & Shimizutani, Satoshi, 2006. "Do non-profit operators provide higher quality of care? Evidence from micro-level data for Japan’s long-term care industry," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 47(1), pages 125-135, June.
    • Handle: RePEc:hit:hitjec:v:47:y:2006:i:1:p:125-135
    DOI: 10.15057/7648
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    Cited by:

    1. David C. Grabowski & Edward C. Norton, 2012. "Nursing Home Quality of Care," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 29, Edward Elgar Publishing.
    2. Norton, E.C., 2016. "Health and Long-Term Care," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 951-989, Elsevier.
    3. Matthew A. COLE & Robert J R ELLIOTT & OKUBO Toshihiro & Eric STROBL, 2013. "The Future of Long-term Care in Japan," Discussion papers 13064, Research Institute of Economy, Trade and Industry (RIETI).
    4. Yong, Jongsay & Yang, Ou & Zhang, Yuting & Scott, Anthony, 2021. "Ownership, quality and prices of nursing homes in Australia: Why greater private sector participation did not improve performance," Health Policy, Elsevier, vol. 125(11), pages 1475-1481.

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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