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Demand of Long-Term Care and benefit eligibility across European countries

Author

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  • Ludovico Carrino

    () (Department of Economics, University Of Venice C� Foscari)

  • Cristina Elisa Orso

    () (Department of Economics, University Of Venice C� Foscari)

  • Giacomo Pasini

    (Department of Economics, University Of Venice C� Foscari, Networks for Studies on Pensions, Aging and Retirement, The Netherlands)

Abstract

In the context of an unprecedented aging process, the role of domiciliary care for older adults is becoming increasingly essential. In order to design effective and proactive policies of formal elderly-care, it is crucial to understand how vulnerable elderly individuals would adjust their informal long-term care utilization to changes in the formal-care provision. Although theoretical frameworks have been proposed, showing that a positive relationship could arise when the elderly exhibit an excess demand of care, empirical evidence is scant, due to the lack of credible instruments to account for the endogenous nature of formal-care decisions. We propose a novel instrument, an index that capture individuals� eligibility status to the LTC domiciliary programmes implemented in their own nation or region. That is, a dummy variable - being eligible or not - which is grounded on the LTC regulation context at national or regional level, but still has individual within region variation due to differences in health conditions and vulnerability assessment. We estimate an IV two-part model using a representative sample of the over 60 population for non-institutionalised individuals in Austria, Germany, France and Belgium. Our results, which are robust to a number of different specifications, point at the lack of crowding-out of the informal- by the formal-care, thus suggesting the existence of a substantial unmet demand of LTC among the elderly.

Suggested Citation

  • 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".
  • Handle: RePEc:ven:wpaper:2015:26
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    Cited by:

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    2. Elsa Perdrix & Quitterie Roquebert, 2020. "Does an increase in formal care affect informal care? Evidence among the French elderly," Working Papers of BETA 2020-02, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Elsa Perdrix & Quitterie Roquebert, 2020. "Does an increase in formal care affect informal care? Evidence among the French elderly," Working Papers halshs-02370689, HAL.

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    More about this item

    Keywords

    home care; instrumental variables; unmet demand; SHARE data;
    All these keywords.

    JEL classification:

    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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