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Returns to caring? Health and well-being effects of subsidized long-term care

Author

Listed:
  • Costa-Font, Joan
  • Jimenez-Martin, Sergi
  • Vilaplana-Prieto, Cristina

Abstract

We estimate the health and well-being effects of subsidized access to long-term care (LTC). Our analysis exploits the staggered implementation of Spain's 2007 System of Autonomy and Care for Dependent People (SAAD), which expanded publicly funded and universal LTC subsidies and supports, as well as its subsequent reform. Using two decades of administrative and survey data and leveraging exogenous regional and individual-level variation in program exposure, we find that access to SAAD benefits reduces the care receiver's depressive symptoms by approximately 10 percentage points, increases its survival probability by 2.6–3 percentage points, and raises its life satisfaction by 0.24–0.50 scale points. Cost-effectiveness estimates indicate that the implied cost per quality-adjusted life year (QALY) gained lies below commonly accepted efficiency thresholds for public health spending in Europe. These findings document sizeable health returns and efficiency gains from publicly subsidized LTC provision.

Suggested Citation

  • Costa-Font, Joan & Jimenez-Martin, Sergi & Vilaplana-Prieto, Cristina, 2027. "Returns to caring? Health and well-being effects of subsidized long-term care," LSE Research Online Documents on Economics 140775, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:140775
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    File URL: https://researchonline.lse.ac.uk/id/eprint/140775/
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    References listed on IDEAS

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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