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Will You Still Want Me Tomorrow? The Dynamics of Families' Long-Term Care Arrangements

  • Michelle Goeree

    ()

    (University of Zurich)

  • Bridget Hiedemann

    ()

    (Seattle University)

  • Steven Stern

    ()

    (University of Virginia)

We estimate dynamic models of elder-care arrangements using data from the Assets and Health Dynamics Among the Oldest Old Survey. We model the use of institutional care, formal home health care, care provided by a child, and care provided by a spouse in the selection of each care arrangement, the primary arrangement, and hours in each arrangement. Our results indicate that both observed heterogeneity and true state dependence play roles in the persistence of care arrangements. We find that positive state dependence (i.e., inertia) dominates caregiver burnout, and that formal care decisions depend on the cost and quality of care.

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File URL: http://humcap.uchicago.edu/RePEc/hka/wpaper/Goeree_Hiedemann_Stern_2011_will-you-still.pdf
File Function: First version, July 20, 2011
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Paper provided by Human Capital and Economic Opportunity Working Group in its series Working Papers with number 2011-035.

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Date of creation: Jul 2011
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Handle: RePEc:hka:wpaper:2011-035
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  15. Heitmueller, Axel & Michaud, Pierre-Carl, 2006. "Informal Care and Employment in England: Evidence from the British Household Panel Survey," IZA Discussion Papers 2010, Institute for the Study of Labor (IZA).
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