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A Country For Old Men? Long‐Term Home Care Utilization In Europe

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  • Silvia Balia
  • Rinaldo Brau

Abstract

ABSTRACT This paper investigates long‐term home care utilization in Europe. Data from the first wave of the Survey on Health, Ageing and Retirement (SHARE) on formal (nursing care and paid domestic help) and informal care (support provided by relatives) are used to study the probability and the quantity of both types of care. The overall process is framed in a fully simultaneous equation system that takes the form of a bivariate two‐part model where the reciprocal interaction between formal and informal care is estimated. Endogeneity and unobservable heterogeneity are addressed using a common latent factor approach. The analysis of the relative impact of age and disability on home care utilization is enriched by the use of a proximity to death (PtD) indicator built using the second wave of SHARE. All these indicators are important predictors of home care utilization. In particular, a strong significant effect of PtD is found in the paid domestic help and informal care models. The relationship between formal and informal care moves from substitutability to complementarity depending on the type of care considered, and the estimated effects are small in absolute size. This might call for a reconsideration of the effectiveness of incentives for informal care as instruments to reduce public expenditure for home care services. Copyright © 2013 John Wiley & Sons, Ltd.

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  • Silvia Balia & Rinaldo Brau, 2014. "A Country For Old Men? Long‐Term Home Care Utilization In Europe," Health Economics, John Wiley & Sons, Ltd., vol. 23(10), pages 1185-1212, October.
  • Handle: RePEc:wly:hlthec:v:23:y:2014:i:10:p:1185-1212
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    Cited by:

    1. Ludovico Carrino & Cristina Elisa Orso, 2014. "Eligibility and inclusiveness of Long-Term Care Institutional frameworks in Europe: a cross-country comparison," Working Papers 2014:28, Department of Economics, University of Venice "Ca' Foscari".
    2. Elenka Brenna & Cinzia Di Novi, 2013. "Is caring for elderly parents detrimental to women’s mental health? The influence of the European North-South gradient," DISCE - Working Papers del Dipartimento di Economia e Finanza def004, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    3. Vincenzo Atella & Federico Belotti & Ludovico Carrino & Andrea Piano Mortari, 2017. "The future of Long Term Care in Europe. An investigation using a dynamic microsimulation model," CEIS Research Paper 405, Tor Vergata University, CEIS, revised 08 May 2017.
    4. repec:eee:hapoch:v1_951 is not listed on IDEAS
    5. repec:eee:hepoli:v:122:y:2018:i:2:p:140-146 is not listed on IDEAS
    6. Matthias Firgo & Klaus Nowotny & Alexander Braun, 2017. "Informal, Formal, or Both? Assessing the Drivers of Home Care Utilization in Austria Using a Simultaneous Decision Framework," WIFO Working Papers 533, WIFO.
    7. Ludovico Carrino & Cristina Elisa Orso & Giacomo Pasini, 2015. "Demand of Long-Term Care and benefit eligibility across European countries," Working Papers 2015:26, Department of Economics, University of Venice "Ca' Foscari".
    8. Cinzia Di Novi & Elenka Brenna, 2013. "Is caring for elderly parents detrimental for women�s mental health? The influence of the European North-South gradient," Working Papers 2013:23, Department of Economics, University of Venice "Ca' Foscari".

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